- USD / CAD is rising for the second day in a row on Wednesday.
- The US dollar index turns positive above 92.30 at the beginning of the American session.
- The yield on 10-year US Treasuries increased 1% before the FOMC Minutes.
The pair USD / CAD it managed to post modest gains on Tuesday and maintained its bullish momentum to hit a fresh weekly high of 1.2618 on Wednesday. At time of writing, the pair was up 0.33% on the day at 1.2606.
Attentive to the FOMC Minutes
Following Tuesday’s steep decline, the benchmark 10-year US Treasury yield rose 1% on Wednesday, helping the dollar remain resilient against its rivals. At the moment, the US dollar index posts small daily gains at 92.35.
No major macroeconomic data will be released on the US economic agenda and investors will closely follow US President Joe Biden’s speech on the spending plan and the FOMC Minutes.
In a preview of the FOMC release, “One issue to be aware of is the possible discussion among FOMC participants on how their views on policy rates for long-term suspensions might change if their relatively optimistic forecasts for growth, employment and inflation will materialize. ” Scotiabank analysts said. “That’s because President Powell said at the press conference that part of that is wanting to see real data and not just forecast it.”
On the other hand, a barrel of West Texas Intermediate is up more than 1% on the day, limiting the USD / CAD rally for the time being. Data from the Ivey Purchasing Managers Index and Canada’s International Merchandise Trade will also be considered for further momentum.