- USD/CAD rebounded from two-year lows.
- WTI pared gains turning negative below $44.50 EIA data up next.
- US Dollar Index edges slightly higher on Tuesday.
USD/CAD dropped 70 pips on Tuesday, extending losses in the Asian session to touch a two year nadir at 1.2914. Heading towards the US open the pair started to pare losses and traded 0.12% higher at 1.2947.
CAD softens as WTI remains under pressure
USD weakness has dragged on USD/CAD since the beginning of the week. Risk on market sentiment has hit demand for US Dollar Index (DXY), pulling it to a 31-month low of 91.10. Although weak demand for equities and a -0.25% decline in S&P 500 Futures is underpinning the greenback. The DXY currently trades up 0.13% at 91.43.
The commodity-sensitive CAD is struggling amid sliding crude oil prices. West Texas Intermediate (WTI) is down 0.4% at $44.20 as clues from OPEC+ surrounding its strategy in 2021.
The US ADP private payroll and November Employment Change data will be in focus, in addition to the Canadian third-quarter Labour Productivity report.