- The dollar rises modestly in the market, on another low volume session.
- USD / CAD continues with lateral movements, with no clear direction.
- Stocks and oil show signs of lack of strength to continue with the rises.
The USD / CAD is rising for the second day in a row on Wednesday and continues to rebound from the ten-day low reached Tuesday at 1.2770. The pair climbed to 1.2832, the highest in two days, driven by the strength of the dollar and a worsening in the mood of the markets.
The pair is moving in the short term without a clear direction. The underlying trend continues to rise. ANDThe rebound brought USD / CAD back above the 20-day average, but it remains sideways, between 1.2775 and 1.2840. A confirmation above 1.2850 would leave the USD heading higher, while a close below 1.2760 would pave the way for a bearish extension.
Low volume, DXY rises slightly
The loonie weakened after global equity markets lost steam. Furthermore, oil is also showing signs that the recent rally has petered out. Tuesday ended with a slight rise, completing five days of progress. On Wednesday the barrel of WTI lost 0.5%, and traded at $ 75.40, without the strength of hours ago.
The dollar is showing something for the moment against emerging currencies and those linked to commodities, but it continues the general trend of low volume and limited routes, in a limited week, in the middle of the holidays.
The dollar index rises 0.08%, over 96.20. The factor behind the rise is in Treasury yields, which rose again on Wednesday. Both the 10-year bond and the 30-year bond are near weekly highs.
The economic calendar ahead shows US trade balance and home sales data pending, which is not expected to have a significant impact.
Technical levels
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