USD/CAD pares early losses, trades flat around 1.2690
- USD/CAD is trading flat above 1.2680 ahead of American session.
- US Dollar Index continues to edge higher toward 93.00.
- WTI clings to modest daily gains above $70 on Monday.
The USD/CAD pair closed the previous week in the positive territory but seems to be having a difficult time making a decisive move in either direction on Monday. After declining to a daily low of 1.2660 during the European trading hours, the pair staged a rebound and was last seen trading near Friday's closing level at 1.2690.
DXY closes in on 93.00
Earlier in the day, rising crude oil prices helped the commodity-related loonie gather strength against its American counterpart. The barrel of West Texas Intermediate (WTI) climbed to its highest level in more than a month at $70.75 but lost its bullish momentum. As of writing, WTI was up 0.7% at $70.08.
On the other hand, the renewed USD strength is providing a boost to USD/CAD at the start of the week. The US Dollar Index (DXY), which gained nearly 6% last week, is currently rising 0.26% at 92.88. Nevertheless, US stock index futures are up around 0.5% ahead of Wall Street's opening bell, suggesting that the upbeat market mood could limit the DXY's upside in the second half of the day.
There won't be any high-tier macroeconomic data releases in the remainder of the day and investors will be waiting for the US Bureau of Labor Statistics' August Consumer Price Index (CPI) figures that will be published on Tuesday.
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.
