- The USD / CAD retreats before the weakness of the dollar.
- Data is coming from the US and Canada.
He USD / CAD gained more than 100 pips in the first two days of the week, but reversed its course on Wednesday, before a rebound in the stock markets and in the price of oil, also accompanied by a fall in the price of the dollar. The pair hit a new daily low at 1.2865 and it’s trading around 1.2875.
WTI bounces, DXY falls
Increased fears for the coronavirus It reignited concerns about an unstable recovery in global energy demand and weighed on crude oil prices earlier in the week. A barrel of West Texas Intermediate (WTI) lost nearly 5% to hit a nine-day low of $ 46.13, but turned north, ahead of the inventory report, and accompanying an improvement in equity markets. WTI is up 0.7% on the day and stands at $ 47.10, helping the Canadian dollar.
On the other hand, Market optimism makes it difficult for the dollar to continue to find demand as a safe haven. The US Dollar Index, which rose for three days in a row, is currently losing 0.25% on the day and is trading at 90.40. For their part, S&P 500 futures are up 0.3%.
In the next few hours, US data will be published that includes the report of personal consumption spending, sale of new homes, personal income, orders for durable goods and unemployment benefits. For its part, the Canadian statistics agency will report on growth data for October.
However, market reaction could be limited in a low volume environment heading into the Christmas holidays.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
