- USD / CAD came under renewed downward pressure ahead of the US session.
- WTI is trading above $ 47, earning more than 1% on Monday.
- The US Dollar Index remains depressed near the 90.50 area.
After spending the first half of the day moving sideways near 1.2770, the pair USD / CAD it came under downward pressure and hit a daily low of 1.2733. At time of writing, the pair was down 0.3% on the day at 1.2720.
Rising crude prices help the CAD related to commodities to gain traction against its main rivals at the beginning of the week. With coronavirus vaccines receiving approval for emergency use, investors continue to value a steady recovery in energy demand in 2021. At the moment, a barrel of West Texas Intermediate (WTI) is up 1.07% on the day to $ 47.07.
DXY keep pushing down
On the other hand, the optimistic mood of the market, reflected in the strong increases registered in the main world stock indexes, makes it difficult for the dollar to find demand as a safe haven. The US dollar index, which closed the previous week virtually unchanged at 90.75, recently hit its lowest level since April 2018 at 90.43.
No major macroeconomic data from Canada, not the United States, will be released on Monday and risk sentiment is likely to remain the main driver of USD / CAD moves.
Wednesday’s economic calendar will feature key events for USD / CAD. The Bank of Canada will release its November Consumer Price Index (CPI) data and the FOMC will announce its monetary policy decisions along with updated economic projections.
Technical levels
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