USD/CAD Price Forecast: Surging oil prices lift Canadian Dollar
The Canadian Dollar (CAD) trades higher against the US Dollar (USD) on Tuesday. The USD/CAD pair is down 0.25% to near 1.3780 at the time of writing as the Loonie outperforms due to surging oil prices.
The Canadian Dollar (CAD) surged higher against the US Dollar (USD) on Tuesday, as surging oil prices bolstered the Loonie. The USD/CAD pair traded down 0.25% to around 1.3780 at the time of this report, with the Loonie outperforming due to the rising energy prices. Canada, being a net exporter of energy, stands to benefit from higher oil prices, which in turn supports its currency.
Meanwhile, the US Dollar faced headwinds as investors grew cautious ahead of key economic data releases, including the US Producer Price Index (PPI) and Consumer Price Index (CPI), both scheduled for release on Thursday and Friday. The US Dollar Index (DXY) also slipped 0.11% to near 98.80. Analysts noted that the CAD was the strongest among the major currencies against the New Zealand Dollar, while the WTI oil price was up around 0.8% to near $91.50, nearing its month-high of $92.25.
Technical analysis indicated that the USD/CAD pair was trading below important support levels, such as the 20-day Exponential Moving Average and Fibonacci retracement levels, suggesting further downside potential.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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