- The loonie broke below 1.27000 in the last hour when Fed Chairman Jerome Powell made remarks.
- USD / CAD received a boost from rising oil prices as WTI was back above $ 75.00.
- The US Dollar Index is holding on to 94.00 despite mixed US economic data.
The USD / CAD It is plummeting below 1.2700 and trading at 1.2643, down 0.87% for the day at the time of writing. At the beginning of the New York session, the pair is trading around 1.3730, but in the last two hours, it fell below 1.26500, as Federal Reserve Chairman Jerome Powell is speaking at the Financing Panel of the House.
Market sentiment is pessimistic as September and Q3 are nearing their end. Trade flows around the world and the portfolio reshuffle could influence price action on the day. Meanwhile, the US dollar index, which measures the dollar’s performance against six rivals, is down 0.16%, standing at 94.22.
Western Texas Intermediate (WTI) crude oil, which trimmed some of Wednesday’s losses, is up about 0.67%, trading at $ 75.17, boosting the loonie, which is benefiting from rising oil prices.
The US dollar is down due to mixed US economic data.
On the US economic calendar, the Bureau of Labor Statistics (LBS) released initial jobless claims for the week ending September 24, which increased by 362,000, up from 335,000. Despite being bad news regarding the labor market, the US Bureau of Economic Analysis (BEA) released second-quarter GDP. The report showed that the US economy rose 6.7%, a pip higher than the 6.6% predicted by economists, without being able to lift the dollar.
Meanwhile, Federal Reserve Chairman Jerome Powell testifies at the Housing Finance Panel. He commented that the Fed is in a difficult situation in terms of inflation and employment. Besides, the [Fed] it is still far from full employment, while inflation is well above target, but is still expected to decline.
On Friday, the Canadian economic calendar will feature July GDP and Markit’s Manufacturing PMI. Relative to the US, personal consumption expenditures and personal income could provide further impetus for USD / CAD traders.
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