- The USD / CAD was under strong downward pressure during the American session.
- The US dollar index fell sharply after FOMC Chairman Powell’s speech.
- Rising crude oil prices provide a boost to the CAD.
After climbing above 1.2700 earlier in the day, the pair USD / CAD it reversed its direction and was last seen trading at a daily low of 1.2628, shedding 0.45% on the day.
DXY drops sharply over Powell’s comments
Widespread USD weakness following FOMC Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium appears to be weighing heavily on USD / CAD.
Although Powell said he thought at the July policy meeting that it might be appropriate to start cutting asset purchases this year, he refrained from providing a timeline and prompted a selloff in the USD. Currently, the US Dollar Index is down 0.3% on the day at 92.77.
In evaluating Powell’s comments, “Federal Reserve Chairman Jerome Powell has defied a chorus of hawks among his colleagues and refrained from hinting at a phasing out of the $ 120 billion-a-month bond buying scheme. from the bank, “said FXStreet analyst Yohay Elam.
Meanwhile, a barrel of West Texas Intermediate (WTI) is up 1.5% on the day at $ 68.75, helping commodity-related CAD retain its strength ahead of the weekend.
Technical levels
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