- USD / CAD achieves a modest recovery after falling below 1.2600.
- WTI is moving within a relatively narrow range above $ 62.00.
- Investors’ attention is on FOMC Chairman Powell’s testimony and BoC Governor Macklem’s speech.
The pair USD / CAD it fell to 1.2580 earlier in the day as rising crude prices allowed the Canadian dollar, a currency pegged to commodity prices, to continue to outperform its rivals. With the USD gaining some strength during the European session, the pair has seen a rebound. At the time of writing, the pair is largely unchanged on the day around the 1.2615 level.
WTI remains near 13-month highs above the $ 62.00 level
On Monday, a barrel of West Texas Intermediate WTI gained more than 5%, driven by increased optimism about a steady recovery in global energy demand and production disruptions due to bad weather conditions in the US After hitting its best in over a year at $ 62.97 earlier in the day, WTI appears to have entered a consolidation phase around $ 62.30 ahead of the stock report of weekly API crude oil.
Meanwhile, the US Dollar DXY Index Clings to Small Daily Gains above the 90.10 level as investors stay on the sidelines and await biannual testimony from FOMC President Jerome Powell, before the Senate Banking Committee at 15:00 GMT.
If Powell comments on rising U.S. Treasury yields and addresses concerns about inflation, the dollar could start to gain traction against its rivals. However, Powell is expected to largely reaffirm that the Federal Reserve will not react to temporary increases in inflation and will reiterate that it is premature to talk about phasing out asset purchases.
In addition, the Governor of the Bank of Canada, Tiff Macklem, also has a speech scheduled at 17:30 GM.
USD / CAD technical levels
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