USD/CAD extends daily slide toward 1.2530 amid renewed USD weakness
- USD/CAD came under renewed bearish pressure in American session.
- US Dollar Index edges lower toward 92.50 on Monday.
- WTI stays relatively quiet around $72.00 at the start of the week.
After spending the European session in a relatively tight range around 1.2570, the USD/CAD pair lost its traction in the last hour. As of writing, the pair was down 0.18% on the day at 1.2538.
DXY turns south in American session
Following the sharp rebound witnessed in crude oil prices in the second half of the previous week, the barrel of West Texas Intermediate (WTI) is fluctuating near $72.00 on Monday, allowing the USD's market valuation to drive USD/CAD's movements.
In the meantime, the greenback is struggling to find demand amid falling US Treasury bond yields. Currently, the benchmark 10-year US T-bond yield is down nearly 1% on the day and the US Dollar Index is losing 0.35% at 92.57.
The only data from the US showed on Monday that New Home Sales declined by 6.6% on a monthly basis in June. This reading missed the market expectation for an increase of 3.5% and put additional weight on the USD's shoulders.
On Wednesday, the Bank of Canada will release the Core Consumer Price Index (CPI) data for June. More importantly, the US Federal Reserve will announce its Interest Rate Decision and publish the Monetary Policy Statement. On Thursday, the US Bureau of Economic Analysis' first estimate of the second-quarter GDP growth will be looked upon for fresh impetus.
Technical levels to watch for