- USD/CAD trades a narrow range.
- Wtı trades flat around $47.
- US Dollar Index slips mildly lower around 90.60.
On Monday USD/CAD moved mildly lower toward 1.27before erasing most of the losses and closing almost flat at 1.2760. On Tuesday, USD/CAD lacks direction in the absence of significant drivers.
Oil rally loses steam
Rising crude oil prices at the start of the week helped lift the commodity-sensitive CAD. However, OPEC’s grim energy demand outlook sent West Texas Intermediate (WTI) lower in the US session on Monday prompting USD/CAD to rebound. On Tuesday, WTI is virtually trading almost unchanged around $47, offering no directional bias to USD/CAD.
The upbeat market mood as reflected by rising global stock markets is keeping pressure on the US Dollar. The US Dollar Index is posting small daily losses around 90.60.
Looking ahead, Canadian Manufacturing Sales and Housing Starts data will be in focus. At 1930 GMT, Bank of Canada (BoC) Governor Tiff Macklem is scheduled to deliver a speech. In the US, Industrial Production and Capacity Utilization figures are awaited.