- USD / CAD is posting small daily gains above 1.2660.
- The US dollar index erased most of the daily losses in the US session.
- WTI is approaching $ 70 before API inventory data.
The pair USD / CAD it came under heavy downward pressure early in the US session and fell to the 1.2600 area before making a decisive bounce. At time of writing, the pair was up 0.13% on the day at 1.2667.
CPI-inspired USD sell-off remains short-lived
Earlier in the day, the US dollar faced sudden selling pressure after the US Bureau of Labor Statistics announced that the core consumer price index (CPI) fell to 4% annually in August from 4.3. % in July. Furthermore, the report revealed that the annual CPI fell to 5.3% from 5.4% as expected.
However, after a sharp drop to 92.32, the US Dollar Index (DXY) reversed its direction and market sentiment soured after the opening bell on Wall Street. Currently, the DXY is posting small daily losses at 92.53 and the S&P 500 Index is down 0.35% to 4.452.
On the other hand, data from Canada showed that Manufacturing Sales decreased by 1.5% in July, compared to analysts’ estimate of a decrease of 1%. On Wednesday, inflation figures for August will be placed on the Canadian economic agenda.
Meanwhile, the risk-averse market environment made it difficult for crude prices to continue rising. Ahead of weekly crude oil stock data from the American Petroleum Institute (API), a barrel of West Texas Intermediate (WTI) is down 0.6% to $ 70.20, keeping the Canadian dollar from commodity-related premiums erase your losses.
Technical levels
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