USD/CAD remains under pressure below 1.32 after upbeat Canadian data
- Canadian wholesale sales rose more than expected in April.
- US Dollar Index struggles to stage a meaningful recovery.
- WTI clings to modest daily gains, trades near $58.
The bearish pressure surrounding the USD/CAD pair remains intact on Tuesday in the early American session as the loonie preserves its strength on the back of upbeat data from Canada and rising crude oil prices. As of writing, the pair was losing 0.12% on the day at 1.3160.
Statistics Canada today reported that wholesale sales rose 1.7% on a monthly basis in April following March's 1.4% growth and came in better than the market expectation of 0.2%. Furthermore, with the geopolitical tensions in the Middle East remaining escalated, crude oil prices continue to rise, providing an additional boost to the commodity-sensitive CAD. At the moment, the barrel of West Texas Intermediate is up 0.2% on the day at $57.9.
On the other hand, the greenback struggles to find demand as investors continue to price July rate cut expectations. The US Dollar Index, which earlier today slumped to its lowest level in more than three months at 95.84 is now virtually unchanged on the day at 96, waiting for NY Fed President Williams, FOMC Chairman, and finally Atlanta Fed President to deliver their speeches.
Meanwhile, the economic docket in the U.S. will feature the Conference Board's Consumer Confidence Survey, new home sales figures, and the Richmond Fed's Manufacturing Index. Nevertheless, with the CME Group FedWatch showing a 0% chance of the Fed keeping its policy rate unchanged in July, the greenback's recovery attempts are likely to remain shallow even if the data beat expectations.
Technical levels to watch for