USD/CAD clings to modest gains above 1.3150 despite rising crude oil prices
- WTI adds more than 1% on Monday on hopes deeper output cuts.
- US Dollar Index rebounds to 97.30 area following last week's drop.
- Coming up: Factory Orders and ISM NY Business Conditions Index data from US.
The USD/CAD pair fell toward the 1.3120 earlier in the day as the CAD capitalized on rising crude oil prices and gathered strength against its rivals. With the Greenback preserving its recovery momentum ahead of the American session, however, the pair gained traction and was last up 0.15% on the day at 1.3155.
Oil pushes higher on OPEC+ output cut expectations
Iranian Oil Minister Zanganeh on Monday noted that he was expecting OPEC+ to agree upon deeper crude oil supply reductions at the December meeting. Furthermore, United States (US) Commerce Secretary Ross said that they were "very far along" in phase-one trade deal talks with China. Boosted by these developments, the barrel of West Texas Intermediate built on Friday's gains and was last up 1.3% on the day at $56.80 to help the Loonie stay resilient against its peers.
On the other hand, after closing the previous week 0.7% lower, the US Dollar Index reversed its course on Monday and kicked off a technical correction. At the moment, the index is up 0.17% on the day at 97.30.
However, the absence of fundamental drivers behind the USD's recovery suggests that it's unlikely to gather momentum in the near-term. In the American session, the ISM NY's Business Conditions Index and Factory Orders data from the US will be watched for fresh catalysts but are unlikely to trigger a significant market reaction.
Technical levels to watch for