- USD / CAD is falling for the fifth day in a row on Wednesday.
- WTI is up more than 1% ahead of the EIA crude oil stocks change data.
- The US Dollar Index remains quiet above 90.00 ahead of Powell’s testimony.
The pair USD / CAD it closed the previous four trading days in negative territory and continues to decline on Wednesday. At time of writing, the pair was trading slightly above the multi-year lows it set at 1.2557, shedding 0.2% on the day at 1.2564.
WTI rises above $ 62 ahead of EIA report
Rising crude oil prices will provide a boost to the Canadian dollar related to commodities on Wednesday. At the moment, a barrel of West Texas Intermediate (WTI) is up 1.5% at $ 62.10. Later in the session, weekly data on changes in crude oil stocks from the US Energy Information Administration (EIA) will be examined. Investors expect to see a 5.3 million barrel decline in crude oil inventories. from the US and a larger than expected withdrawal could help WTI preserve its bullish momentum.
On the other hand, the US dollar index remains relatively calm after Tuesday’s modest rally and allows crude oil prices to continue to affect USD / CAD movements.
Later in the session, FOMC Chairman Jerome Powell will testify before the House Financial Services Committee. On Tuesday, Powell assured markets that they will continue to support the economy and downplayed concerns about a possible spike in inflation. Major Wall Street indices staged a decisive rally in Powell’s remarks and a similar market reaction could force the dollar to remain on the defensive.
Technical levels
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