- The pair USD/CAD gains traction after finding support near 1.4000.
- The crude oil from the recovery in EIA data, rest of short duration.
- The US Dollar Index climb into positive territory above 100.
The USD/CAD pair fell to a daily low or 1.4006, in the first trading hours of the American session, but has made a U-turn is reinforced by the broad USD strength. As of writing, the pair is trading at its highest level in six days and 1.4090, gaining 0.06% on the day.
Earlier in the day, the recovery in crude oil prices has provided a boost for commodities loonie. Although, the WTI rose to $26.93 with the initial response to the EIA data, which showed a draw in US crude oil inventories for the first time since January, it has lost its traction. As of writing, WTI was up only 0.35% on the day at $25.90.
The USD is the application on Powell’s remarks
On the other hand, the strong rebound witnessed the proof is in the The US Dollar The Index (DXY) has allowed the pair is to gather bullish momentum. FOMC Chairman Powell, on Wednesday, it is clear that the Fed it is not looking at the possible use of negative interest rates. Powell also recalled that the fiscal policy should play a greater role in the recovery phase.
At the time, the DXY was 0.06% on a daily basis to 100.06. There will not be any macroeconomic data releases in the rest of the day and the usd’s valuation could continue to impact the USD/CAD pair movement.
During this time, data published by the Bureau of Labor Statistics showed that the The Consumer Price Index (PPI) fell to -1.3% on a monthly basis in April, but has been largely ignored by the market participants.