USD/CAD drops to fresh daily lows below 1.2550 despite falling crude oil prices
- USD/CAD came under modest bearish pressure in European session.
- WTI is losing more than 1% on Monday, trading above $60.
- US Dollar Index posts small daily losses ahead of PMI data.
The USD/CAD pair closed the previous week virtually unchanged and continued to fluctuate in a narrow band during the Asian session on Monday. With the greenback facing a renewed selling pressure in the European trading hours, however, the pair edged lower and was last seen losing 0.2% on the day at 1.2548.
DXY retreats below 93.00 ahead of US data
In the absence of significant fundamental drivers, the risk-on market environment seems to be making it difficult for the USD to find demand. The US Dollar Index (DXY) is currently down 0.06% on a daily basis at 92.97.
On Friday, the data from the US showed that Nonfarm Payrolls in March surged by 916,000. This reading beating the market expectation of 647,000 by a wide margin and helped the market mood improve. Reflecting the dominance of risk flows, the S&P 500 Futures are up 0.6% at 4,033.
On The other hand, the barrel of West Texas Intermediate is falling 1.5% to trade at $60.30 and limiting USD/CAD's downside for the time being.
Later in the session, the IHS Markit and the ISM will be both releasing the Services PMI figures for March. The US economic docket will feature February Factory Orders and the ISM-NY Business Conditions as well. Nevertheless, the market reaction to these data is likely to remain subdued amid thin trading conditions on Easter Monday.
Technical levels to watch for