USD/CAD reverses direction after climbing above 1.2760, retreats toward 1.2700
- USD/CAD falls sharply during the American trading hours.
- US Dollar Index continues to push lower toward 93.50.
- Oil turns positive after edging lower during the European session.
The USD/CAD pair climbed to a daily high of 1.2766 in the early trading hours of the American session but reversed its course amid broad selling pressure surrounding the greenback. As of writing, the pair was losing 0.22% on a daily basis at 1.2710.
DXY extends slide in the second half of the day
The US Dollar Index (DXY), which closed in the negative territory on Monday, remains depressed on Tuesday as the performance of US Treasury bond yields continues to impact the USD's performance in the absence of fundamental drivers. At the moment, the benchmark 10-year T-bond yield is falling 2.5% on the day and the DXY is down 0.45% at 90.54.
The data from the US showed that the NFIB Business Optimism Index in January edged lower to 95 in January from 95.9. On a positive note, JOLT Job Openings in December rose to 6.6 million and came in higher than the market expectation of 6.5 million. Nevertheless, market participants showed little to no reaction to these figures.
Meanwhile, following a technical correction to $57.25 during the European session, the barrel of West Texas Intermediate (WTI) regained its traction and turned positive on the day above $58, providing an additional boost to the loonie.
On Wednesday, the Consumer Price Index (CPI) data from the US will be looked upon for fresh impetus.
Technical levels to watch for