- USD / CAD starts another week under rising pressure from crude oil prices.
- China estimates that demand for oil is already close to pre-virus levels.
- The risky market environment weighs on the USD on Monday.
The USD / CAD was under further downward pressure on Monday, as the commodity-sensitive loonie strengthened on the rise in crude oil prices. After dropping to a daily low of 1.4023, the pair rallied slightly and was last seen at 1.4035, losing 0.52% on the day.
The oil rally is gaining momentum
According to Bloomberg, China’s oil consumption at 13 million barrels per day is already close to levels recorded at the same period last year. Stimulated by this development, a barrel of West Texas Intermediate (WTI) reached its highest level since March 16 at $ 32.21. Currently, the WTI is up 7.4% on the day at $ 32.
On the other hand, the optimistic mood of the market, reflected by the sharp rise observed in the world stock indexes, weighs on Monday the safe haven. The US dollar index, which rose slightly to 100.50 earlier in the day, is now down 0.2% on the day to 100.15, allowing the bearish momentum to remain intact.
White House economic adviser Hassett told CNBC on Monday that the administration was ready to take more steps to increase spending on coronaviruses. The US economic record will not include release of important macroeconomic data for the rest of the day and crude oil action is expected to continue to dominate the movements of the USD / CAD.