USD/CAD extends rebound toward 1.3150 as DXY continues to push higher
- USD/CAD edged higher in the early American session.
- US Dollar Index rose to 93.50 on Tuesday.
- Rising crude oil prices help CAD limit its losses.
After testing 1.3100 earlier in the day, the USD/CAD pair turned north in the early American session on Tuesday and touched a daily high of 1.3147. As of writing, the pair was up 0.25% on the day at 1.3144.
The broad-based USD strength seems to be fueling the pair's rebound in the second half of the day. With investors seeking refuge amid a lack of progress in Brexit talks and heightened concerns over additional delay in US coronavirus aid, the greenback continues to outperform its peers.
At the moment, the US Dollar Index is gaining 0.51% on a daily basis at 93.51. Reflecting the dismal market mood, the S&P 500 and the Dow Jones Industrial Average both trade in the negative territory.
On the other hand, rising crude oil prices help the commodity-sensitive CAD limit its losses. Following Monday's sharp drop, the barrel of West Texas Intermediate (WTI) is up 1.5% on a daily basis at $40.08.
The data from the US on Tuesday showed that the Consumer Price Index (CPI) in September ticked up to 1.4% on a yearly basis and matched analysts' estimates. Other data revealed that the IBD/TIPP Economic Optimism Index rose from 45 to 55.2 in October but was largely ignored by the market participants.
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.
