USD/CAD surpasses 1.2800 as Germany's refusal to ban Russian oil imports drags WTI

USD/CAD eyes on 1.2880 on long liquidations in WTI.
The underlying risk-aversion theme has strengthened the greenback against the loonie.
US CPI numbers and Canada’s Employment Change data will decorate the economic calendar this week.

Sagar Dua FXStreet

The USD/CAD pair has witnessed a firmer rally on Monday as the West Texas Intermediate (WTI) oil pares gains on the intraday bullish opening gap. The pair has activated buyers after overstepping 1.2800 and is aiming to recapture February 24 high at 1.2876.

Earlier, WTI was skyrocketing on expected prohibition of Russian oil imports to the US and its allies. US President Joe Biden initially decided to isolate the Kremlin on its invasion of Ukraine and a ban on the import of oil from Russia. It was likely that other allies would follow the footprints of the US. However, Germany, being the biggest buyer of Russian crude oil, rejected plans to ban energy imports.

The statement from German Chancellor Olaf Scholz that “Germany is accelerating its plans to expand its use of alternative energy sources but cannot halt imports of Russian energy overnight” has barricaded the rally in the oil prices. This has strengthened the greenback against the loonie.

Adding to the oil plunge, the loonie has been hammered amid broader risk-aversion in the market. The US dollar index (DXY) has climbed above 99.00 on rising bets over a significant hawkish stance in interest rate decision by the Federal Reserve (Fed) in its March monetary policy meeting.

Although the headlines from the Russia-Ukraine war will dictate the likely action in the pair, investors will also focus on the US Consumer Price Index (CPI) data, which is due on Thursday. While Canada’s docket will report the Employment Change data on Friday.

USD/CAD

Overview
Today last price	1.2813
Today Daily Change	0.0089
Today Daily Change %	0.70
Today daily open	1.2724

Trends
Daily SMA20	1.2717
Daily SMA50	1.2684
Daily SMA100	1.2648
Daily SMA200	1.2574

Levels
Previous Daily High	1.2792
Previous Daily Low	1.267
Previous Weekly High	1.281
Previous Weekly Low	1.2587
Previous Monthly High	1.2878
Previous Monthly Low	1.2636
Daily Fibonacci 38.2%	1.2746
Daily Fibonacci 61.8%	1.2717
Daily Pivot Point S1	1.2666
Daily Pivot Point S2	1.2607
Daily Pivot Point S3	1.2543
Daily Pivot Point R1	1.2788
Daily Pivot Point R2	1.2851
Daily Pivot Point R3	1.291

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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