- USD/CAD came under renewed bearish pressure in American session.
- Rising crude oil prices provide a boost to CAD.
- US Dollar Index stays relatively quiet above 90.00.
After spending the first half of the day moving sideways around 1.2100, the USD/CAD pair lost its traction and touched its lowest level of the day at 1.2073. As of writing, the pair was down 0.2% on the day at 1.2077.
Rising crude oil prices support CAD
In the absence of high-tier macroeconomic data releases, crude oil prices continue to impact the CAD's valuation. With the barrel of West Texas Intermediate (WTI) rising more than 1% on the day at $66.15, USD/CAD turned south during the American trading hours.
On the other hand, the US Dollar Index is moving sideways in a narrow band around 90.30. Wall Street's main indexes opened in the negative territory on Monday and the risk-averse market environment seems to be helping the USD limit its losses.
Earlier in the day, the data from the US showed that the NY Fed Empire State Manufacturing Index declined to 24.3 in May from 26.3. Nevertheless, market participants showed little to no reaction to this data.
Meanwhile, Federal Reserve's Vice Chairman Richard Clarida said on Monday that the Fed needs to be attuned and attentive to incoming data on inflation to ensure it is transitory. The benchmark 10-year US Treasury bond yield is up nearly 1% on the day after these comments.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0800 after US data
EUR/USD has lost its traction and declined toward 1.0800 with the initial reaction to the upbeat consumer confidence data from the US. Meanwhile, Wall Street's negative opening seems to be helping the US Dollar find its footing and making it hard for the pair to stretch higher.
GBP/USD clings to modest daily gains near 1.2300
GBP/USD has retreated to the 1.2300 area in the early American session with the US Dollar finding demand amid the negative shift witnessed in risk mood. The data from the US revealed that the CB Consumer Confidence Index rose modestly in March.
Gold pulls away from session highs, holds near $1,960
After having climbed toward $1,970 earlier in the day, Gold price erased a portion of its daily gains and retreated to the $1,960 area. The benchmark 10-year US Treasury bond yield stays in positive territory above 3.5%, not allowing XAU/USD to gather further bullish momentum.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
S&P 500: With banking crisis in rear view, market pushes index closer to 4,000
The S&P 500 on Monday moved ahead cautiously without much fanfare after the US government agreed to sell $72 billion worth of Silicon Valley Bank assets to First Citizens Bank (FCNCA).