USD/CAD edges lower toward 1.34 as oil clings to daily gains
- Crude oil prices push higher following Jeddah meeting.
- US Dollar Index climbs to multi-week highs above 98.
- Coming up: Existing home sales from the U.S. and speeches by FOMC members.
With the commodity-sensitive loonie gathering strength on the back of rising crude oil prices, the USD/CAD pair closed the first day of the week with a modest 20-pip loss and continued to push lower on Tuesday toward the 1.34 handle. As of writing, the pair was down 0.08% on a daily basis at 1.3420.
Although OPEC+ at the Jeddah meeting said it decided to opt out not to make any decisions on crude oil output ahead of the June meeting, Saudi Arabia's Energy Minister Khalid al-Falih noted that they were willing to drive down oil inventories. After closing the previous day $0.5 higher, the barrel of West Texas Intermediate climbed higher today and was last up 0.8% on the day at $63.70.
Meanwhile, following yesterday's consolidation phase below the 98 mark, the US Dollar Index gained traction on Tuesday and advanced to its highest level in three weeks as the selling pressure surrounding the major European allowed the greenback to find demand.
Ahead of the existing home sales data, the US Dollar Index is up 0.15% on a daily basis at 98.07. Also in the American session, Boston Fed President Rosengren and Chicago Fed President Evans will be delivering speeches. There won't be any macroeconomic data releases from Canada.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
