USD/CAD retreats to 1.3200 area on broad USD weakness

• US President Trump’s meeting with FOMC’s Powell weighs on USD.
• US Dollar Index extends daily slide toward 97.70.
• Crude oil remains under pressure to help pair keep losses limited.

The USD/CAD pair lost its traction during the American trading hours and fell to a fresh session low of 1.3201 pressured by a broad-based USD weakness. As of writing, the pair was trading at 1.3210, losing 0.1% on a daily basis.

Earlier in the session, the Federal Reserve in a statement announced that the Federal Open Market Committee (FOMC) Chairman Jerome Powell met with US President Donald Trump and Treasury Secretary Steven Mnuchin. Following the meeting, Trump, via Twitter, said that they have discussed  “interest rates, negative interest, low inflation, easing, dollar strength.”  

The US Dollar Index, which tracks the USD’s value against a basket of six major currencies, turned south on Trump’s comments and was last down 0.26% on the day at 97.75.  

Trade headlines push crude oil prices lower

On the other hand, after CNBC’s Beijing Bureau Chief, Eunice Yoon, reported that China was pessimistic about reaching a trade deal with the US, crude oil met a fresh selling wave. The barrel of West Texas Intermediate (WTI) broke below the $57 handle and made it difficult for the commodity-related CAD to continue to gather strength. At the moment, the WTI is down 1.85% on the day at $56.70.

There won’t be any significant macroeconomic data releases on Thursday and investors will be waiting for Wednesday’s  inflation report from Canada and FOMC  October meeting minutes.

Technical levels to watch for