USD/CAD struggles to stage a rebound, stays in red below 1.3600
- USD/CAD fell to a daily low of 1.3560 on Monday.
- US Dollar Index consolidates last week's gains below 97.50.
- WTI is clinging to small daily gains near $40.
The USD/CAD pair started the new week in a calm manner near 1.3600 but lost its traction during the European trading hours. After dropping to a daily low of 1.3560, the pair recovered modestly and was last seen trading at 1.3573, losing 0.22% on a daily basis.
USD weakness and oil gains weigh on USD/CAD
The lack of significant macroeconomic data releases on Monday seems to be forcing the US Dollar Index (DXY) to make a technical correction. The DXY rose for the second straight time last week and gained 0.59%. On Monday, the index is down 0.3% at 97.37, allowing the bearish momentum to remain intact.
On the other hand, boosted by OPEC's pledge to improve compliance with output cuts, crude oil prices pushed higher with the barrel of West Texas Intermediate (WTI) posting its highest weekly close in more than three months. At the moment, the WTI is trading a little below $40, up around 1% on the day.
In the second half of the day, the Chicago Fed National Activity Index and Existing Home Sales data will be featured in the US economic docket.
More importantly, Bank of Canada's newly appointed Governor Tiff Macklem is scheduled to deliver a speech at 1500 GMT.
Technical levels to watch for