- Canadian dollar losses momentum amid a retracement in crude oil prices from monthly highs.
- US dollar strengthens modestly against commodity and emerging market currencies.
The USD/CAD pair bottomed at the beginning of the US session at 1.3249 and then bounced to the upside, rising more than 50 pips from the lows. It trimmed losses and rose to 1.3316.
The area around 1.3315/20 (20-hour moving average) capped the recovery of the US dollar. As of writing, USD/CAD was trading at 1.3305, down 25 pips for the day but far from the lows.
The rebound took place amid a recovery of the US dollar across the board and also on the back of a retreat in crude oil prices. The WTI barrel reached earlier today at $59.55 the highest level since mid-November but then reversed erasing all gains. It was trading at $58.80, down 0.55% for the day.
Despite the moves in the USD/CAD pair, volatility remains low in the market. Traders await the FOMC statement and the updated projections, due tomorrow.
Recently the WSJ reported that US and Chinese negotiators are planning new rounds of talks starting next week. Trade Representative Lighthizer and Treasury Secretary Mnuchin are expected to meet Chinese Vice Premier Liu He in Beijing next week.
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