USD/CAD clings to daily gains near 1.2580 despite broad USD weakness
- USD/CAD remains on track to close in the positive territory on Tuesday.
- US Dollar Index stays deep in the negative territory below 92.50.
- Crude oil prices edge lower as market mood sours.
Following Monday's modest decline, the USD/CAD pair gained traction and remains on track to close the day in the negative territory. As of writing, the pair was up 0.35% on a daily basis at 1.2582.
Eyes on Canada CPI data, FOMC meeting
Despite the broad-based USD weakness, falling crude oil prices and the risk-averse market environment is making it difficult for the loonie to find demand on Tuesday.
Pressured by a more-than-4% decline witnessed in the benchmark 10-year US Treasury bond yield, the US Dollar Index is losing 0.25% on the day at 92.40. On the other hand, crude oil prices edge lower amid souring market mood and the barrel of West Texas Intermediate (WTI) was last seen falling nearly 1% at $71.50.
Earlier in the day, the data published by the US Census Bureau showed that Durable Goods Orders rose by 0.8% in June, falling short of the market expectation of 2.1%. On a positive note, the Conference Board's Consumer Confidence Index improved modestly to 129.1 in July but failed to help the USD outperform its rivals.
On Wednesday, Consumer Price Index data from Canada will be looked upon for fresh impetus before the US Federal Reserve announces its monetary policy decisions in the late American session.
Previewing the FOMC's July policy meeting, "in what should largely be viewed as a placeholder meeting, we think risks around the USD are more balanced than a month ago," said TD Securities analysts.
Technical levels to watch for