- USD/CAD trades mildly higher on Monday.
- US Dollar Index edges towards 91.00 despite upbeat market mood.
- Canadian & US Manufacturing PMI data in focus
USD/CAD built on gains from the previous week, edging mildly higher on Monday.
USD maintains strength in the European session
The USD appeared to be driving USD/CAD at the start of the week. The US Dollar Index (DXY) trades at two-week highs around 90.90.
Despite renewed optimism of additional US fiscal stimulus and improving coronavirus vaccine relations between the EU and the UK, the greenback isn’t struggling finding buyers.
Looking ahead IHS Markit’s final January Manufacturing PMI figures for both the US and Canada will be eyed. More importantly, the US ISM Manufacturing PMI will be released.
The barrel of West Texas Intermediate (WTI) is trading modestly higher near $52.50, underpinning the commodity-sensitive loonie versus the USD.