USD/CAD rebounds above 1.4150 as oil recovery remains shallow
- WTI trades above $27, still down more than 4%.
- US Dollar Index posts small daily gains on Monday.
- Coming up: Bank of Canada's Business Outlook Survey.
Risin crude oil prices in the second half of the last week helped the commodity-sensitive loonie stay resilient against the greenback and allowed the USD/CAD pair to close around 1.4200, 150 pips below its weekly highs. At the start of the new week, the pair dropped below the 1.41 handle but staged a rebound in the last couple of hours. As of writing, the pair was trading at 1.4156, still erasing 0.3% on a daily basis.
CAD continues to react to fluctuations in crude oil prices
The pair edged higher during the Asian trading hours after crude oil came under strong pressure on news of OPEC+ emergency meeting getting postponed to Thursday. Although the barrel of West Texas Intermediate erased a large portion of its early losses, it struggled to climbs above and made it difficult for the CAD to stay strong against its peers. At the moment, the barrel of WTI is down 4.65% on the day at $27.45.
On the other hand, the US Dollar Index is posting modest daily gains near 100.80 on Monday to keep the pair's recovery momentum intact.
There won't be any significant macroeconomic data releases from the US and investors will be paying close attention to the Bank of Canada's Business Outlook Survey, which is scheduled to be published at 1430 GMT.
Technical levels to watch for