USD/CAD rebounds from daily lows, posts modest losses near 1.2670
- USD/CAD continues to fluctuate in a narrow range.
- WTI erases portion of daily gains after renewing multi-week highs.
- US Dollar Index remains on track to end the day flat.
The USD/CAD pair came under modest bearish pressure during the American trading hours and touched a daily low of 1.2637. Nevertheless, the pair managed to stage a rebound in the last hour and was last seen losing 0.15% on the day at 1.2670.
WTI rally supports CAD
Rising crude oil prices helped the loonie gather strength against its American counterpart earlier in the day. After rising more than 2% on Friday, the barrel of West Texas Intermediate (WTI) preserved its bullish momentum and reached its highest level since early August at $70.94 before going into a consolidation phase. As of writing, WTI was up 1% at $70.30.
On the other hand, the greenback started the new week on a firm footing with the US Dollar Index (DXY) advancing higher toward 93.00. However, the positive shift witnessed in the market sentiment following Wall Street's strong opening made it difficult for the DXY to continue to push higher. Currently, the DXY is virtually unchanged on a daily basis at 92.66.
On Tuesday, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for August.
Previewing these data, "August's Core CPI figure is critical for the and for markets," noted FXStreet Analyst Yohay Elam. "A read within estimates would keep the dollar bid, a level of 4.5% or more would trigger gains, while 4% or lower could undo recent gains."
US Inflation Preview: CPI critical for taper, three scenarios for the dollar.
Technical levels to watch for