- Market sentiment is bullish, although a stronger US dollar underpins USD / CAD.
- The US Dollar Index hits a new yearly high at 94.27.
- Pending US home sales data was mixed, ignored by the market.
- Fed Chairman Jerome Powell will be on an ECB panel at 15:45 GMT.
The USD / CAD it is up for the second day in a row and is trading at 1.2748, 0.49% more during the day at the time of writing. As the New York session progresses, market sentiment is bullish as the European and US equity markets are on the up, despite the Asian equity indices ending up on the losing end. In addition, Chinese real estate giant Evergrande raised $ 1.75 billion and sold shares to Shenyang Shengjing Finance Investment Group Co., reassuring investors.
The US dollar index hits a new yearly high
The US Dollar Index (DXY), which measures the dollar’s performance against a basket of six pairs, is rising 0.57%, to 94.26, testing new yearly highs, supporting USD / CAD, which posted a weekly high of 1.2758 .
The West Texas Intermediate (WTI) is making a comeback after falling below $ 73.56, trading at $ 75.54, an increase of 1.88%, putting a cap on the price of the USD / CAD, as crude oil accounts for almost 20% of Canadian exports.
Pending US Home Sales Data Mixed
In the United States, the National Association of Realtors revealed that Pending Home Sales for August increased 8.1%, better than the 1.4% forecast on a monthly basis. Turning to the year-on-year reading, sales fell 8.3%, down from a 14.5% increase for the period.
On the Canadian economic agenda, Statistics Canada published the Commodity Price Index for August, which decreased 2.4% worse than the 2.2% increase in July, while the Price of Industrial Production for the same month increased to -0.3% , compared to -0.4% in the previous one.
Later, Federal Reserve Chairman Jerome Powell will participate in an ECB panel discussion at 15:45 GMT.
Technical levels
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