USD/CAD continues to push higher, closes in on 1.3200
- USD/CAD started the new week on a strong footing.
- Falling crude oil prices continue to weigh on the CAD.
- US Dollar Index stays in the positive territory on Monday.
After closing the previous week modestly lower, the USD/CAD pair staged a rebound on Monday and touched its highest level in a week at 1.3193. As of writing, the pair was up 0.52% on the day at 1.3190.
WTI slumps on dismal demand outlook
Falling crude oil prices makes it difficult for the commodity-related loonie to find demand. The surging number of coronavirus infections globally and recently imposed restriction measures in Europe seem to have revived concerns over an uneven recovery in energy demand. As of writing, the barrel of West Texas Intermediate (WTI) was down 2.2% on a daily basis at $38.85.
On the other hand, the risk-averse market environment is helping the greenback gather strength against its peers as a safe-haven. At the moment, the US Dollar Index (DXY) is gaining 0.3% on the day at 93.02. In the meantime, the S&P 500 futures are down more than 1% on the day, suggesting that the DXY could extend its daily upside if Wall Street suffers heavy losses after the opening bell.
Later in the session, the Federal Reserve Bank of Chicago will release its National Activity Index. September New Home Sales data will be featured in the US economic docket as well.
Technical levels to consider