After closing in the green on Monday, the USD/CAD is edging higher.
Ahead of PMI data, the US Dollar Index remains over 92.30.
WTI is currently trading in the red, below $76.
The USD/CAD pair managed to maintain its bullish trend on Tuesday after posting moderate gains on Monday. The pair was trading at a new daily high of 1.2377 at the time of writing, up 0.3 percent on the day.
In the early trading hours of the American day, fresh USD strength and decreasing crude oil prices boost USD/rise. CAD’s The US Dollar Index is currently up 0.16 percent on the day at 92.38, after closing the first day of the week unchanged.
Meanwhile, the West Texas Intermediate (WTI) barrel is down more than 1% on the day, trading at $75.30. Crude oil prices rose on Monday as OPEC+ postponed its meeting, keeping the group’s oil output constant. However, the favorable impact of this development on WTI appears to have faded as investors remain on the sidelines while waiting for new developments in the OPEC+ output strategy.
Market investors will be watching the ISM Services PMI from the United States later in the session. The headline PMI is expected to fall to 63.5 in June from 64 in May, according to market expectations. The Prices Paid Index, on the other hand, will be the essential metric to watch because it will provide new insight into input price pressures in the service sector.
Why the inflation component of the ISM Services PMI could ignite a dollar rally./n
