- USD/CAD is struggling to find direction on Tuesday.
- US Dollar Index clings to small gains above 90.00.
- WTI stays in a consolidation phase after renewing multi-year highs on Monday.
After closing the first day of the week little changed at 1.2079, the USD/CAD pair continues to move sideways on Tuesday and was last seen posting small daily losses at 1.2075.
Oil prices push lower after latest rally
On Monday, the barrel of West Texas Intermediate (WTI) touched its highest level since October 2018 at $69.97 but ended up closing the day with small losses at $69.20. Ahead of the American Petroleum Institue's (API) Weekly Crude Oil Stock data, WTI is down 1% at $68.50, making it difficult for the commodity-sensitive loonie to gather strength against its rivals.
On the other hand, the US Dollar Index (DXY) is fluctuating in a tight range above 90.00, not allowing USD/CAD to gain traction. Later in the session, Goods Trade Balance and JOLTS Job Openings data will be featured in the US economic docket. Statistics Canada will release the April International Merchandise Trade report as well.
Nevertheless, USD/CAD is unlikely to react to these data as investors wait for the Bank of Canada (BoC) to announced its policy decisions on Wednesday.
Bank of Canada Preview: QE reduction to continue later in 2021.
Meanwhile, Wall Street's main indexes look to open near Monday's closing levels as US stock futures trade little changed on the day.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds the bounce near 0.6400 amid signs of easing US-China trade tensions
AUD/USD attracts some dip-buyers to hold near 0.6400 in the Asian session on Wednesday. Hopes for a possible de-escalation in the US-China trade war boost investors' appetite for riskier assets and support the Aussie. Further, the pause in the US Dollar rebound also aids the pair's upside.
USD/JPY drops back below 142.00 as US Dollar sees fresh selling
USD/JPY is back under 142.00, fading the overnight solid rebound to weekly highs in the Asian session on Wednesday. Signs of easing US-China trade tensions ledto a sharp recovery in the risk sentiment, lifting the US Dollar broadly. But USD sellers seem to have returned on doubts over Trump's veracity.
Gold recovers ground toward $3,400 as US Dollar upswing fizzles
Gold price is heading back toward $3,400, stalling Tuesday's correction from the $3,500 mark, The US Dollar recovery fixxles, allowing Gold price to regain footing as investors remain wary about US President Trump's intentions. Trump said on Tuesday that he hopes for US-China trade war de-escalation and doesnt intend to fire Fed's Powell.
Why is the crypto market up today?
Bitcoin rallied above $93,000 on Tuesday alongside the broader financial market following Treasury Secretary Scott Bessent's statement at a closed-door meeting that the trade feud between the US and China is unsustainable.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.