canadian-dollar-coins - CAD
  • USD/CAD trades at 2 week low.
  • Risk on trade weighs on the USD.
  • WTI rallies for  a fifth straight day on Tuesday.

USD/CAD sold off on Monday  and extended its slide on Tuesday amid rising crude oil prices and  USD weakness. The pair touched a 2 week nadir at 1.3010.

Oil rally continues on upbeat demand outlook

Recent vaccine developments have revived optimism for a steady recovery in global oil demand which continue to lift crude oil prices.  West Texas Intermediate rose over 1% on Monday and today trades at a three month high of $43.52, up 1.6%.

The upbeat mood in the market has spilled into Tuesday with the major European stock indexes rising over 1%. The US S&P 500 Futures trade +0.8%, suggesting that risk flows are driving the financial markets.

As a result, the US Dollar is out of favour. Ahead of the Conference Board’s Consumer Confidence Index data, the US Dollar Index is trading0.3% lower on the day at 92.22.