USD/CAD retreats from monthly highs, turns flat on near 1.3230
- US Dollar Index recovers Monday's losses despite a lack of data releases.
- WTI struggles to continue to push higher, trades around $57.
- Attention remains on US President Trump's speech on Tuesday.
The USD/CAD pair climbed to its highest level in a month at 1.3258 earlier in the day but struggled to preserve its bullish momentum and turned flat on the day near1.3230.
After losing nearly 1% on Monday, the barrel of West Texas Intermediate (WTI) rose to $57.50 area on Tuesday but struggled to preserve its momentum. As of writing, the barrel of WTI was trading flat on the day at $56.90, making it difficult for the commodity-related CAD to gather strength against the USD and limiting the pair's losses.
USD continues to float above 98 ahead of Powell's testimony
On the other hand, following last week's rally, the US Dollar Index staged a technical correction on Monday due to thin trading conditions on Veterans Day and closed the day in the negative territory before reversing its direction on Tuesday. Ahead of Federal Open Market Committee Chairman Powell's two-day testimony that will start tomorrow, the index is up 0.1% on the day at 98.32.
Meanwhile, markets will be paying close attention to US President Donald Trump's speech at the Economic Club of New York luncheon. If Trump provides a boost to the market sentiment by delivering positive comments on the trade dispute with China, we could see crude oil prices gain traction and create renewed bearish pressure on the pair.
Technical levels to watch for