- USD / CAD is fluctuating in a tight range on Wednesday.
- WTI consolidates Tuesday’s gains, holding quiet near $ 40.
- Market action is likely to remain subdued for the remainder of the day.
After Tuesday’s modest recovery, the pair USD / CAD it is moving in a tight range on Wednesday and is having a hard time determining its next short term direction. At time of writing, the pair was virtually unchanged on the day at 1.3140.
DXY consolidates Tuesday’s gains near 93.50
In the absence of significant fundamental drivers, the US dollar index, which rose more than 0.5% on Tuesday, is moving sideways near 93.50. The only data on the US economic agenda will be the Producer Price Index (PPI) and it is unlikely to provoke a significant market reaction.
On the other hand, after gaining almost 2% and helping commodity-sensitive CAD limit its losses to its losses, a barrel of West Texas Intermediate is trading with modest losses close to $ 40. Later in the day, weekly crude oil stock data from the American Petroleum Institute (API) will be analyzed for fresh momentum.
Meanwhile, S&P 500 futures are virtually unchanged on the day at 3,502, suggesting that Wall Street is likely to open the day little changed. Market participants will be on the lookout for new developments surrounding the US stimulus talks and a positive shift in market sentiment could cause the USD to lose interest and weigh on the USD / CAD.
Credits: Forex Street
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