USD/CAD climbs to session highs above 1.2370, eyes on US data
- USD/CAD edges higher after closing in the green on Monday.
- US Dollar Index stays above 92.30 ahead of PMI data.
- WTI trades in the negative territory below $76.
The USD/CAD pair managed to post modest gains on Monday and preserved its bullish momentum on Tuesday. As of writing, the pair was trading at a fresh daily high of 1.2377, rising 0.3% on a daily basis.
DXY regains traction ahead of PMI data
The renewed USD strength and falling crude oil prices fuel USD/CAD's upside in the early trading hours of the American session. The US Dollar Index, which closed the first day of the week unchanged, is currenltly rising 0.16% on the day at 92.38.
Meanwhile, the barrel of West Texas Intermediate (WTI) is losing more than 1% on the day at $75.30. On Monday, crude oil prices rallied after OPEC+ decided to postpone its meeting, leaving the group's oil output unchanged. Nevertheless, the positive impact of this development on WTI seems to have faded away as investors move to the sidelines while waiting for fresh developments with regards to OPEC+ output strategy.
Later in the session, the ISM Services PMI from the US will be watched closely by market participants. The market consensus points to a modest retreat in the headline PMI to 63.5 in June from 64 in May. However, the Prices Paid Index will be the key figure to watch as it will provide fresh clues on input price pressures in the service sector.
ISM Services PMI Preview: Why the inflation component could trigger a dollar rebound.
Technical levels to consider