- USD / CAD continues to push lower in the US session.
- The US Dollar Index extends the slide to 91.50 on Wednesday.
- WTI is up more than 4%, trading above $ 63.
The pair USD / CAD it rose to a daily high of 1.2576 during European business hours, but reversed its direction in the second half of the day. At time of writing, the pair was trading at its lowest level since March 22 at 1.2499, shedding 0.24% on the day.
Oil rally, USD selloffs drag USD / CAD down
The widespread selling pressure surrounding the dollar continues to weigh on the USD / CAD. Despite a modest rally seen in the benchmark yield on 10-year US Treasuries, the US Dollar Index (DXY) extended its decline after breaking below 92.00 and hit its worst at at over three weeks at 91.57. At the moment, the DXY is shedding 0.26% at 91.60.
While speaking at an event hosted by the Economic Club of Washington, FOMC Chairman Jerome Powell said the market should focus on results rather than the latest dot plot. Powell further noted that the Fed was likely to begin tapering off QE before embarking on a rate hike.
On the other hand, the strong rebound observed in crude oil prices is giving a boost to the Canadian dollar related to commodities. After data released by the U.S. Energy Information Administration showed that crude oil inventories in the U.S. fell by 5.9 million barrels in the week ending April 9, a barrel of West Texas Intermediate (WTI) soared higher. Currently, WTI is trading at $ 63.20, with a daily increase of 4.5%.
Technical levels
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