USD/CAD erases majority of daily gains, trades around 1.2330
- USD/CAD reversed its direction in the second half of the day.
- WTI rose above $76 following the latest OPEC headlines.
- US Dollar Index continues to move sideways above 92.00.
The USD/CAD pair rose to a daily high of 1.2372 in the early American session but reversed its direction, erasing the majority of its gains. As of writing, the pair was up 0.1% at 1.2330.
WTI climbs above $76 as OPEC+ postpones meeting
With the greenback staying relatively quiet at the start of the week, fluctuations in crude oil prices impact USD/CAD's movements. The US Dollar Index, which lost 0.3% following the mixed June jobs report from the US on Friday, is moving sideways around 92.20 on Monday as US markets remain closed in observance of the Independence Day holiday.
Earlier in the day, the barrel of West Texas Intermediate (WTI) fluctuated in the negative territory below $75 and made it difficult for the commodity-related loonie to find demand.
However, crude oil prices gained traction later in the day and provided a boost to the CAD. Following Monday's consultations, OPEC and non-OPEC producers decided to postpone the meeting, leaving the group's oil output unchanged. Fueled by this development, WTI turned north and was last seen gaining 1.4% on the day at $76.15.
Meanwhile, the Bank of Canada's Business Outlook Survey painted a relatively optimistic outlook, helping the CAD preserving its strength against its rivals.
BoC: Firms’ inflation expectations increased in Q2.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
