- USD / CAD fell to its lowest level since May 2018 on Tuesday.
- WTI posts modest losses close to $ 45.50 before API data.
- The US Dollar Index is climbing towards 91.00.
The pair USD / CAD It fell to its lowest level since May 2018 at 1.2766 on Tuesday, but experienced a rebound during US business hours. At time of writing, the pair was up 0.12% on the day at 1.2812.
Investors expect the next significant catalyst
Hours earlier, rising crude prices helped the commodity-related CAD to gain traction against the dollar. After losing more than 1% and closing at $ 45.60 on Monday, the barrel of West Texas Intermediate (WTI) rallied to $ 45.90 in the European session. However, WTI lost traction and is now posting small losses of $ 45.50 ahead of weekly crude stock data from the American Petroleum Institute.
On the other hand, an observed technical correction in the US dollar index (DXY) is allowing the USD / CAD to remain in positive territory. At the moment, the DXY is up 0.15% on the day at 90.92. Meanwhile, the major Wall Street indices are trading mixed and do not give a clue on market sentiment.
Earlier in the day, the US Bureau of Labor Statistics reported that unit labor costs in the third quarter fell 6.6%. Although this reading was better than the market’s expectation of a drop of 8.9%, it failed to trigger a market reaction.
On Wednesday, the Bank of Canada will announce its decision on the interest rate and publish the policy statement.
Technical levels
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