- Crude oil erases large part of last week’s gains.
- US Dollar Index stretches higher toward 99.30 on Tuesday.
- Coming up: NY Fed’s Empire State Manufacturing Index and Manufacturing Sales from Canada.
The USD/CAD pair dropped to its lowest level of February at 1.3225 on Monday but reversed its course on Tuesday as falling crude oil prices, once again, started to weigh on the commodity-sensitive CAD. As of writing, the pair was trading at 1.3260, adding 0.2% on a daily basis.
WTI drops below $51
Resurfacing worries over the coronavirus having a negative impact on the energy demand outlook caused crude oil prices to come under renewed selling pressure on Tuesday. Apple said that it may miss the sales and profit targets in the first quarter of 2020 to hurt the risk sentiment on Tuesday. At the moment, the barrel of West Texas Intermediate (WTI) is trading at $50.90, losing 2.65% on the day.
Meanwhile, Russian Energy Minister Alexander Novak is reportedly still in talks with the OPEC+ as the country continues to decide whether it will join the deeper output cuts recommended by the organizations Joint Technical Committee (JTC).
On the other hand, the sour market mood seems to be helping the greenback gather strength against its major rivals. With the US Dollar Index advancing to its highest level in more than four months near 99.30, the pair’s bullish momentum remains intact.
In the early trading hours of the American session, Manufacturing Sales from Canada and the NY Fed’s Empire State Manufacturing Index will be looked upon for fresh impetus.
Technical levels to consider