- USD / CAD maintains a two-day uptrend amid a pause in the USD advance.
- The WTI retreats after a weekly increase in US crude reserves and cautious sentiment.
- The focus is on the Fed’s decision, US economic data also remains in the spotlight.
The USD / CAD remains above 1.2400, flirting with four-day highs near 1.2425, as the pair’s bulls celebrate falling WTI prices ahead of critical US events.
The bullish tone in the pair may be associated with the decline in WTI prices, after a weekly rise in US crude inventories, according to the latest data from the American Petroleum Institute (API). API data showed US crude supplies increased by 3.6 million barrels for the week ended October 29.
Secondly, a pause in the US dollar rebound is making it an uphill battle for the USD / CAD bulls to extend the further rise. Dollar bulls are on the sidelines ahead of the Fed’s major decision, with reduced bond purchases on the table.
Although they are the Fed’s outlook on interest rates and inflation those that will be crucial for financial markets in the coming months. Meanwhile, sentiment in the oil market will also play a crucial role in the CAD price action, as investors await the OPEC + meeting on Thursday.
Meanwhile, ISM’s services PMI and ADP’s US jobs report could bring new momentum to the pair as investors prepare for the Fed’s decision.
USD / CAD technical levels
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