- USD / CAD rose to 1.2823 in the first US session.
- The US Dollar Index remains above 90.50 before the FOMC.
- WTI bounces above $ 53 after weekly EIA report.
The pair USD / CAD it extended its daily rally early in the US session and reached its highest level in more than two weeks at 1.2843. With crude prices rebounding in recent hours, the commodity-sensitive Canadian dollar showed some resistance against the dollar and the pair fell back below 1.2800. At time of writing, USD / CAD was up 0.65% on the day at 1.2771.
Focus shifts to the FOMC
The strong selloff in the major stock indices after the opening bell on Wednesday allowed the dollar to continue to gain strength against its rivals as a safer alternative. At the moment, the US Dollar Index is up 0.5% on the day to 90.62 and the S&P 500 Index is losing 1.32% to 3,798.
Investors are now waiting for the US Federal Reserve to release its policy statement. Earlier in the day, data from the US showed that durable goods orders in December were up 0.2% on a monthly basis. Although this reading disappointed the market expectation of 0.9%, it failed to trigger a significant market reaction.
Meanwhile, the weekly US Energy Information (EIA) report revealed that crude oil stocks in the United States fell by nearly 10 million barrels last week. A barrel of West Texas Intermediate (WTI), which fell below $ 52 earlier in the day, reversed its direction and is currently rising 0.8% to $ 53.15.
Technical levels
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