- Crude oil prices remain under pressure for the fourth straight day.
- US Dollar Index consolidates gains above the 99 mark.
- Annual inflation in the US rose to 1.8% in August.
The USD/CAD pair lost its traction during the early trading hours of the American session and slumped toward the 1.32 handle but didn’t have a difficult time returning to the 1.3250 area. As of writing, the pair is down 0.1% on the day at 1.3255 and is looking to warp up the week virtually unchanged.
US Dollar Index adds more than 0.5% this week
The data published by the United States (US) Bureau of Economic Analysis (BEA) today revealed that inflation, as measured by the Core Personal Consumption Expenditure (PCE) Price Index, ticked up to 1.8% on a yearly basis from 1.7% in July and matched the market expectation. However, further details of the report showed that personal spending only rose 0.1% and fell short of analysts’ estimate for an increase of 0.3% and caused the Greenback to weaken against its major rivals slightly.
Although the US Dollar Index eased from the multi-week highs that it set at 99.31, it remains on track to post its highest weekly close since April of 2017 above the 99 mark.
On the other hand, easing tensions in the Middle East and concerns over the global energy demand outlook today weighed on crude oil prices and made it difficult for the commodity-related Loonie to preserve its gains. At the moment, the barrel of West Texas Intermediate (WTI) is down 0.9% on the day at $56.
Technical levels to watch for