- The USD / CAD starts the shortened holiday week on the back foot.
- WTI is trading in positive territory above $ 48 on Monday.
- USD struggles to find demand after US Pres. Trump signs the COVID-19 relief bill.
USD / CAD pushed lower towards 1.2800 on Monday but staged a slight rebound ahead of the US session. At the time of writing, the pair was down 0.2% on a daily basis to 1.2841.
Rising crude oil prices helped the commodity-sensitive loonie strengthen early in the week. With the signing of the COVID-19 relief bill by US President Donald Trump later on Sunday, the risk climate turned positive and crude oil prices gained ground. For the moment, a barrel of West Texas Intermediate is up 0.65% to $ 48.60.
Eyes on Wall Street
On the other hand, the USD is struggling to find demand as a safe haven and allow USD / CAD to stay in negative territory. The US Dollar Index (DXY), which fell below 90.00 earlier today, is currently showing small daily gains at 90.28. The fact that there were no fundamental drivers behind the DXY rebound suggests that this move was a technical correction.
In the meantime, the S&P 500 Futures is up 0.7% on the day and the greenback could weaken against its rivals in the second half of the day if the main Wall Street indices rise sharply.
There will be no release of significant macroeconomic data for the rest of the day.