- The loonie falls for the third day in a row amid mixed risk sentiment and unchanging oil prices.
- USD / CAD remained subdued around the 1.2775-1.2829 range.
- Fed lawmakers in favor of a faster cut: Bullard, Bostic, Mester and Powell.
The USD / CAD It extends its gains for the third day in a row, amid mixed market sentiment, up a modest 0.02%, trading at 1.2817 at the time of writing. European indices are falling, following the path of Asian equity futures, while, in the US, major stock indices are rising as traders continue to assess the impact of the COVID-19 – Omicron variant on the global economy.
USD / CAD remained in range in the overnight session, trading between the 1.2775-1.2829 range, fluctuating between the daily central pivot point and the December 1 high. That, in part along with risk aversion, dampened investors’ appetite for riskier assets; Also, crude oil prices were low before the OPEC + meeting. When Wall Street opened, the USD / CAD bulls pushed the pair to a fresh daily high at 1.2835, but the move faded, retreating towards the 1.2810 area.
Fed officials join the list of aggressive voters
On Wednesday, the Fed’s policy makers reinforced the need for a faster cut. Fed Chairman Jerome Powell said inflation is linked to the pandemic and high prices have been stubbornly persistent. In addition, he noted that “we have to move on from the transitory word” and reinforced the strength of the US economy.
In the same position, Cleveland Fed Chair Loretta Mester said, “making the downsizing faster is definitely buying insurance and options, so if inflation doesn’t drop significantly next year, we’re in a position to I can go up if I have to. “He noted that recent data” has supported that case, so I am very open to considering a faster rate of decline. “
That said, and for those who like to keep score, Bullard, Bostic, Mester and Powell are in favor of a faster QE reduction, which would aim to end in the first quarter of 2022.
Meanwhile, the US Western Texas Intermediate (WTI) crude oil benchmark index falls nearly 1%, trading at $ 64.99, propping up the USD / CAD direction, amid some US dollar weakness.
There was nothing to offer on Canada’s economic agenda.
During the day, the Fed’s Bostic, Quarles, Daly and Barkin will give statements.
Technical levels
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