USD/CAD extends rebound to new weekly high above 1.2380
- USD/CAD pushes higher for the second straight day on Tuesday.
- Falling crude oil prices continue to weigh on CAD.
- US Dollar Index climbs above 92.00 ahead of American session.
After closing the first day of the week in the positive territory, the USD/CAD pair preserved its bullish momentum and reached its highest level in a week at 1.2383 on Tuesday. As of writing, the pair was up 0.33% on a daily basis at 1.2377.
Focus shifts to US data
On Monday, falling crude oil prices weighed heavily on the commodity-related loonie. The barrel of West Texas Intermediate (WTI) lost 1.65% as investors get ready for Thursday's OPEC+ meeting. Currently, WTI is down 0.6% at $72.35, making it difficult for the CAD to show resilience against its rivals.
On the other hand, the US Dollar Index is rising 0.23% at 92.10, helping USD/CAD continue to push higher. April Housing Price Index and the Conference Board's Consumer Confidence will be featured in the US economic docket on Tuesday.
Previewing this data, "the Consumer Confidence Index from the Conference Board is expected to rise slightly to 119 in June from 117.2 in May," noted FXStreet senior analyst Joseph Trevisani. "Consumer sentiment has recovered about two-thirds of the February 2020 to April pandemic plunge from 132.60 to 85.7. The majority of the rise has occured in the past three months as the index jumped from 95.2 in February to 114.9 in March."
US Conference Board Consumer Confidence June Preview: Pragmatism above all.
Meanwhile, Wall Street's main indexes remain on track to open little changed on Tuesday with US stocks futures trading flat ahead of the opening bell.
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.
