- USD / CAD climbs back above 1.2700 amid a broad USD rebound.
- A pullback in WTI prices also helps lift USD / CAD.
- All eyes remain on today’s US PCE inflation and Canadian GDP.
The USD / CAD is spreading gains above the 1.2700 level, finding support from the general rebound of the US dollar while risk sentiment remains bleak.
Markets continue concerned about a likely US government shutdown amid a delay in voting on the infrastructure bill, as the last quarter of 2021 begins. Furthermore, stagflation risks and concerns looming in China they also leave investors worried.
The pair also benefits from a small setback in WTI prices from near a three-year high of $ 76.50. The news that OPEC is considering releasing more oil to markets to counteract the current supply crisis they are weighing on black gold prices. Although, China’s willingness to buy more oil and other energy supplies to meet rising domestic demand dampens the decline.
The focus is now on the US ISM Manufacturing PMI, the Fed’s favorite core PCE inflation gauge, and Canada’s monthly GDP release for new business opportunities.
The pair’s decline could probably remain limited as long as it remains above the 21-day moving average at 1.2683. To the upside, acceptance above 1.2750 is needed to resume the recent uptrend.
USD / CAD additional levels
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