USD/CAD falls below 1.2600 as WTI advances beyond $61

1 week ago 2
USD/CAD is edging lower in the second half of the day. US Dollar Index steadies around 90.00, looks to post big daily losses. WTI reclaims $61, looks to snap two-day losing streak.

The USD/CAD rose to 1.2650 area in the early American session but lost its traction with rising crude oil prices providing a boost to the commodity-sensitive loonie. As of writing, the pair was down 0.12% on the day at 1.2595.

DXY extends slide to fresh multi-week lows

Earlier in the day, the USD/CAD pair edged higher as the rising US Treasury bond yields helped the greenback stay resilient against its rivals. However, with the benchmark 10-year reference pulling away from the yearly high it set at 1.394% earlier in the day, the USD started to weaken against its peers. The US Dollar Index is currently at its lowest level since January 12, losing 0.4% on the day at 90.00.

On the other hand, the barrel of West Texas Intermediate staged a deep correction in the second half of the previous week and lost more than 2% both on Thursday and Friday. On Monday, the WTI managed to erase the majority of those losses and was last seen gaining 4% at $61.30.

There won't be any significant macroeconomic data releases featured in the Canadian economic docket on Tuesday. The Conference Board's Consumer Confidence Index from the US will be looked upon for fresh impetus.

More importantly, FOMC Chairman Jerome Powell will be testifying before the Senate Banking Committee and Bank of Canada Governor Tiff Macklem will deliver a speech at 1730 GMT.

Technical levels to watch for

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