- USD / CAD is moving down ahead of the US session.
- The US dollar index continues to move away from the multi-month high set on Tuesday.
- WTI extends downward correction, tests $ 80 critical level.
The pair USD / CAD remains under modest downward pressure during European hours on Wednesday with the dollar struggling to find demand ahead of key events. At time of writing, the pair was down 0.16% on the day at 1.2445.
DXY turns south on Wednesday
Falling US Treasury yields appear to be weighing on the dollar on Wednesday. The benchmark 10-year US Treasury yield, which lost more than 3% on Tuesday, is currently losing 0.5% to 1,572%. Reflecting the underperforming USD, the US Dollar Index (DXY) is down 0.25%. Meanwhile, US stock index futures are rising 0.15% to 0.5% on the day, making it difficult for the dollar to attract investors.
Later in the session, the US Bureau of Labor Statistics will release the inflation report for September. Investors expect the Core Consumer Price Index (CPI) to remain unchanged at 4% annually. A stronger-than-forecast inflation reading is likely to provide a boost to the dollar in the second half of the day.
At the end of the US session, the Minutes from the September FOMC meeting will be reviewed to gain new insights on the timing and pace of reduction in asset purchases. In preview of this event, “Minutes from the FOMC meeting of the bank’s decision in September will likely serve as a reminder that the Fed is on the verge of downsizing in November, boosting the dollar,” said FX Street analyst. , Yohay Elam.
On the other hand, a barrel of West Texas Intermediate (WTI) is trading in negative territory near $ 80 and helps the USD / CAD limit its losses for the time being.
Technical levels
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