- USD/CAD struggles to shake off the bearish pressure on Tuesday.
- The risk-on market environment continues to weigh on the greenback.
- Rising crude oil prices boost demand for commodity-sensitive loonie.
After testing 1.3500 during the early hours of the European session, the USD/CAD staged a rebound and recovered to 1.3550 before coming under renewed bearish pressure in the last hour. As of writing, the pair was trading at its lowest level since March 9th at 1.3495, losing 0.55% on a daily basis.
The strong risk appetite on Tuesday continues to weigh on the greenback. The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, slumped to its lowest level after US stocks gained traction following a quiet start to the day. At the moment, the index is down 0.28% on the day near 97.50.
Meanwhile, the only data from the US showed that the ISM-NY Business Conditions Index improved to 19.5 in May from 4.3 in April and helped the market mood remain upbeat.
Focus shifts to BoC
On the other hand, hopes of OPEC+ extending and/or deepening the oil output cuts is supporting crude oil prices on Tuesday. With the barrel of West Texas Intermediate trading above $36 with a daily gain of around 1.5%, the loonie is preserving its strength against its rivals.
On Wednesday, the Bank of Canada will announce its interest rate decision and release the policy statement. Previewing this event, “an ongoing upbeat economic outlook may boost the loonie, while pessimism would send it down,” said FXStreet analyst Yohay Elam.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
EUR/USD stabilizes after US retail sales smash estimates
EUR/USD has bounced off its lows but remains below 1.20 after US retail sales smashed estimates with a 9.8% leap. Moreover, jobless claims tumbled to 576,000. Markets are digesting the big bulk of data.
GBP/USD rises toward 1.38 ahead of Brexit meeting
GBP/USD maintains a cautious approach below 1.3800, accumulating minor losses. Global risk uncertainties weigh on the pair. Investors await the Brexit meeting on the NI issue.
ETH seizes the spotlight as BTC and XRP contemplate retracement
Bitcoin price shows a correction in play after the MRI flashed a red ‘one’ cycle top signal. Ethereum shows a strong trend continuation while the rest of the market experiences a minor pullback.
XAU/USD jumps above $1,760 amid slumping US T-bond yields
Gold extended its daily rally beyond $1,760 on Thursday. 10-year US Treasury bond yield is down more than 4% on the day. US Dollar Index falls into the negative territory below 91.60.
Citi (C) beats on EPS and revenue, investment banking booms!
Citigroup (NYSE:C) reports Q1 2021 earnings showing strong growth in investment banking following on from Goldman smashing it on Wednesday. Citi shares are trading $74.20 in pre-market up nearly 2%.