- USD / CAD turned south after failing to breach 1.3200.
- The US dollar index returned to 93.00 after peaking early in the US session.
- WTI continues to trade with modest gains above $ 43.
USD / CAD hit a daily high of 1.3206 early in the US session but made a sharp turn in the last hour. At the time of writing, the pair was down 0.12% on a daily basis to 1.3152.
DXY loses momentum amid risk flows
A positive change in market sentiment, as evidenced by the strong gains seen in major Wall Street indices, appears to be weighing on the greenback. The US dollar index, which climbed to a daily high of 93.36, reversed its direction and was last seen flanking the day at 93.00. Meanwhile, the S&P 500 Index hit a new high of 3,457 in the dying minutes.
Moderna reported on Wednesday that its experimental coronavirus vaccine has shown similar immune responses in young and old adults in early-stage trials and has rekindled optimism for an effective treatment.
Earlier today, the US Census Bureau reported that durable goods orders in July rose 11.2% on a monthly basis. Although the drawdown far exceeded analysts’ estimate of 4.3%, the positive impact on the dollar was short-lived.
Meanwhile, the shutdown of oil production due to Hurricane Laura in the United States pushed up crude oil prices and helped the commodity-linked loonie strengthen against its peers.
On Thursday, FOMC President Jerome Powell’s speech at the Jackson Hole Symposium will be closely followed by market participants.