- USD/CAD is edging lower in the early American session.
- WTI is trading in the positive territory above $40.
- US Dollar Index retreats to session low near 93.60.
After climbing to a fresh weekly high of 1.3341 in the early trading hours of the European session, the USD/CAD pair lost its traction amid renewed USD weakness and rising crude oil prices. As of writing, the pair was trading at 1.3820, losing 0.2% on a daily basis.
DXY continues to erase Tuesday’s gains
The broad-based USD strength after US President Donald Trump’s decision to halt stimulus talks until after the election caused the pair to turn south late on Tuesday. However, with the market sentiment improving on hopes President Trump sending stimulus checks to American families and providing aid to airlines, the greenback started to weaken against its rivals. At the moment, the US Dollar Index (DXY), which touched a daily high of 93.90 earlier in the day, is down 0.28% on the day at 93.59.
On the other hand, the barrel of West Texas Intermediate (WTI) continues to trade in the positive territory above $40 ahead of the US Energy Information Administration’s (EIA) weekly report and helps the loonie stay resilient against its rivals.
Later in the session, the Ivey Purchasing Managers Index for September will be featured in the Canadian economic docket. More importantly, the FOMC will release the minutes of its September meeting at 1800 GMT.
Meanwhile, investors will be keeping a close on Wall Street’s performance. A negative shift in risk sentiment could provide a boost to the USD and cause USD/CAD to turn north in the second half of the day.
Technical levels to watch for
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