USD/CAD pushes lower toward 1.2800 on rising crude oil prices, USD selloff
- USD/CAD fell to a fresh weekly low on Tuesday.
- WTI rebounds above $48 after closing in red on Monday.
- US Dollar Index remains depressed near 90.00 ahead of Wall Street's opening bell.
The USD/CAD pair closed the first day of the week with small losses and extended its slide to a fresh weekly low of 1.2801 on Tuesday. As of writing, the pair was down 0.25% on the day at 1.2812.
WTI turns north
Rising crude oil prices help the commodity-related loonie gather strength against its rivals. Although the barrel of West Texas Intermediate lost more than 1% on Monday, it didn't have a difficult time reversing its direction as investors remain optimistic about a steady recovery in energy demand amid the coronavirus vaccine rollout. At the moment, the WTI is up nearly 1% at $48.10.
On the other hand, the risk-positive market environment is forcing the greenback to stay on the back foot and doesn't allow USD/CAD to stage a recovery.
Reflecting the upbeat market mood, the S&P 500 Futures are up 0.4% on the day and the US Dollar Index is losing 0.35% at 90.01.
There won't be any significant macroeconomic data featured in the US nor the Canadian economic docket in the remainder of the week and the risk perception is likely to continue to impact USD/CAD's movements.
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.
