- WTI posts modest daily gains above the $60 handle.
- NY Fed’s Empire State Manufacturing Index rebounds in July.
- US Dollar Index gains traction in the early NA session.
The USD/CAD pair lost 40 pips last week and doesn’t seem to be interested in a recovery attempt on Monday. As of writing, the pair was trading at 1.3020, losing 0.07% on the day and staying a few pips away from the 2019-low that it set at 1.3016 last week.
The broad USD weakness and rising crude oil prices continue to keep the pair under constant bearish pressure. The barrel of West Texas Intermediate, which gained 4.5% last week, extended its rally and was last up around 1% on a daily basis at $60.85 to help the commodity-related loonie preserve its resilience against its rivals.
On the other hand, the upbeat data published by the Federal Reserve Bank of New York helped the greenback find some demand in the early trading hours of the American session and seems to be allowing the pair to limit its losses for the time being.
After the NY Fed’s Empire State Manufacturing Index improved to 4.3 in July from -8.6 in June to beat the market expectation of 2, the US Dollar Index pulled away from the daily low of 96.75 and was last seen adding 0.16% on a daily basis at 96.88.
There won’t be any macroeconomic data releases in the remainder of the day and the pair is likely to continue to react to changes in oil prices and the USD’s market valuation.