- USD / CAD is struggling to find direction on Tuesday.
- WTI is trading at modest losses as focus shifts to OPEC + meeting.
- The US Dollar Index remains under pressure ahead of US data.
After closing the first day of the week in negative territory, the pair USD / CAD appears to have entered a consolidation phase on Tuesday. At time of writing, the pair was up 0.1% on the day at 1.3088.
Crude oil loses traction after Monday’s rally
Renewed optimism from the coronavirus vaccine earlier in the week rekindled hopes for a steady recovery in global energy demand and helped drive crude oil prices soar. A barrel of West Texas Intermediate (WTI) gained more than 3% on Monday and provided a boost to the Canadian dollar related to commodities.
On Tuesday, WTI is trading in negative territory above $ 41 as investors expect OPEC + to announce its decision on extended production cuts after the meeting.
On the other hand, the US Dollar Index (DXY) is extending its decline for the fourth day in a row on Tuesday, preventing the pair from turning north. Before US retail sales and industrial production data, the DXY is down 0.3% on the day to 92.35.
Meanwhile, S&P 500 futures were down 0.6% on the day, suggesting that major Wall Street indices could open in negative territory. A sell-off in US stocks could support the USD in the second half of the day and pave the way for a rally in USD / CAD.
Technical levels
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