- Capacity utilization in Canada improves to 83.3% in the second quarter.
- Core PPI in US rose more than expected in August.
- WTI drops below $58 after OPEC lowers demand growth expectations.
The USD/CAD pair failed to react to today’s macroeconomic data releases from the US and Canada and continues to move sideways near the 1.3150 handle.
The US Bureau of Labor Statistics today announced that the core Producer Price Index, which strips volatile food and energy prices, rose 2.3% in August to beat analysts’ estimate of 2.2%. On the other hand, Statistics Canada reported that capacity utilization in Canada improved to 83.3% in the second quarter from 81.1%.
Crude oil prices weaken on demand worries
Meanwhile, in its monthly report earlier today, OPEC said that it lowered its global oil demand growth forecast by 60,000 barrels per day for 2020 citing the potential negative impact of global economic slowdown on the energy demand outlook. Crude oil lost its traction on OPEC’s publication and the barrel of West Texas Intermediate turned flat on the day below $58 to make it difficult for the commodity-sensitive Loonie to outperform the Greenback.
On the other hand, the selling pressure surrounding major European currencies, especially the EUR ahead of tomorrow’s ECB announcements, allows the USD to preserve its strength on Wednesday. At the moment, the US Dollar Index is up 0.35% on a daily basis at 98.66.
Technical levels to watch for
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