- Building permits in Canada rose more than expected in April.
- US Dollar Index looks to close the day higher.
- WTI loses more than 1% on Monday.
The USD/CAD pair started the new week under pressure as the stronger risk appetite in the early trading hours of the Asian session allowed the barrel of West Texas Intermediate extend its recovery toward the $55 mark and boosted the demand for the commodity-related loonie. After dropping to its lowest level since March 1 at 1.3225, however, the USD/CAD pair turned north and staged a decisive rebound to turn positive on the day. As of writing, the pair was posting small daily gains near 1.3270.
The sharp upsurge seen in the US Treasury bond yields today helped the greenback gather strength on Monday and caused the pair to turn north. The US Dollar Index, which slumped to its lowest level in 10-weeks at 96.46 on Friday, is looking to close the day with a daily gain of around 0.25% at 96.80. The only data from the U.S. today showed that job openings in April were a little higher than expected but was ignored by the participants.
Earlier in the NA session, the data from Canada showed that building permits in April rose by an impressive 14.7% but failed to help the CAD as the falling crude oil prices offset any potential gains the currency could have posted against the buck. Following the early rally, the WTI is now down 1.5% on the day at $53.25.
Previewing this week's macro events concerning the USD/CAD pair, "There is little to note in the domestic data calendar, although Thursday's household balance sheet for Q1 should get some attention after the unexpected surge in consumption. Elsewhere, top-tier US data (CPI, retail sales) will garner attention as markets place bets on nearterm Fed easing," said TD Securities analysts.
Technical levels to watch for
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