USD/CAD continues to push higher toward 1.2600 on USD strength, oil selloff

  • USD/CAD rose to its highest level in more than 10 days above 1.2580.
  • US Dollar Index closes in on 93.00 on Monday.
  • WTI is losing more than 2%, trades below $67.

After dropping toward 1.2530 earlier in the day, the USD/CAD pair regained its traction and reached its highest level since July 28 at 1.2587. As of writing, the pair was up 0.2% on the day at 1.2575.

DXY approaches 93.00

The selling pressure surrounding crude oil prices and the unabated USD strength is allowing USD/CAD to stay in the positive territory at the start of the week.

Supported by the upbeat employment data and hawkish Fedspeak, the US Dollar Index (DXY) is up 0.17% on the day at 92.94.

The data published by the US Bureau of Labor Statistics showed on Monday that the number of job openings on the last business day of June reached a new series-high of 10.1 million. Additionally, Atlanta Federal Reserve Bank President Raphael Bostic noted that the Fed could start tapering asset purchases between October and December. On a similar note, Richmond Federal Reserve Bank President Thomas Barkin said that the Fed has made substantial progress towards the taper benchmark.

On the other hand, the barrel of West Texas Intermediate (WTI) is losing 2.4% on the day at $66.35, making it difficult for the commodity-related loonie to stay resilient against its rivals.

Technical levels to watch for

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