USD / CAD cuts losses and trades 1.2625 due to the strength of oil

• Positive market sentiment drives commodity-linked loonie.
• WTI is trading above $ 75.00 for the first time in two months, which benefits the CAD.
• Durable goods orders from the US were better than expected, up 1.8%.
• New York Fed Chairman Williams said: “Substantial progress has been made on inflation.”

Earlier during the Asian session, the USD / CAD fell to 1.2610 near 1.2600. However, as the New York session begins, it is cutting losses trading at 1.2622, down 0.24% at the time of writing.

Market sentiment is in risk appetite mode. The Japanese yen and the Swiss franc, the so-called safe-haven currencies, have fallen. European stock indices closed higher. On the other hand, the Dow Jones is up 0.47%, while the S&P 500 and the Nasdaq technology are down 0.17% and 0.97%, respectively.

Meanwhile, oil prices continue to trade higher, boosting the Canadian economy based on crude exports. The Western Texas Intermediate (WTI) is rallying to new two-month highs, up 2.05%, currently at $ 75.35, weighing on the USD / CAD pair.

The US Dollar Index (DXY), which tracks the performance of a basket of six currencies against the dollar, is up 0.08%, standing at 93.35.

US Durable Goods Orders for August exceed July reading

The US Census Bureau revealed that durable goods orders for August increased 1.8% from 0.5% in July’s reading. Demand for durable goods has expanded even as capacity shortages and supply chain disruptions frustrate factories’ production efforts.

Additionally, new orders excluding defense increased 2.4% versus a decline to the -0.5% forecast.

On Monday, New York Fed Chairman John C. Williams made remarks. He said that “it is clear that we have made substantial progress in achieving our inflation target. [de la Fed]”In addition, he commented that he expects inflation to fall back to around 2% in 2022. As for the labor market, he added,” there have also been very good progress towards maximum employment, “but he remarked that there is still a long way to reach maximum employment.

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