- USD / CAD registers small gains during the American session.
- The US Dollar Index remains below 90.00 as the focus shifts to the FOMC Minutes.
- Falling crude oil prices weighed on the Canadian dollar on Wednesday.
The pair USD / CAD it experienced a modest rebound during US trading hours and advanced to a session high of 1.2123 before entering a consolidation phase. At time of writing, the pair was up 0.15% on the day at 1.2081.
Looking at the FOMC Minutes
Hours earlier, data from Canada showed that the Consumer Price Index (CPI) rose to 3.4% annually in April from 2.2% in March. This reading was higher than the market expectation of 3.2% and helped the CAD gain traction. However, the sharp drop in crude oil prices made it difficult for the commodity-sensitive Canadian dollar to continue to find demand.
After losing almost 2% on Tuesday, the barrel of West Texas Intermediate (WTI) extended its decline and touched its lowest level in three weeks at $ 61.94. As of this writing, WTI is trading at $ 63.60, where it is down 2% on the day.
Meanwhile, the US dollar index is clinging to modest daily gains at 89.90 supported by safe-haven flows. Although the main Wall Street indices managed to move away from the daily lows, they still lose between 0.3% and 0.7%.
Later in the session, the FOMC will release the Minutes of its April meeting and investors will look for new clues on inflation expectations and the timing of the asset downsizing.
Technical levels
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