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USD / CAD struggles at 1.2700 as WTI trades above $ 74.00

  • USD / CAD fell 40 pips as WTI climbed to new monthly highs.
  • Market sentiment dampened appetite for high beta currencies such as the loonie.
  • In the coming week, the Canadian GDP report will be the focus of investors.

At the beginning of the US session, the Canadian dollar was trading above 1.2700 due to declining market sentiment caused by various factors. However, as the session progresses, the USD / CAD It’s just up 0.09%, trading at 1.2667 at the time of writing.

As mentioned above, market sentiment is pessimistic. Evergrande’s concerns about a possible overflow could materialize. The Chinese real estate giant did not pay interest on the dollar-denominated bond due Thursday, although it has 30 days to honor the coupon. Additionally, the Federal Reserve’s outlook for a gradual reduction in bonds later in the year, and half of the FOMC members seeking a rate hike in the second half of 2022, according to the dot plot, also played a role. in the mood.

WTI hit a new two-month high above $ 74.00

Going back to USD / CAD, oil prices are at the forefront. WTI rose to a monthly high of $ 74.14, a 1.10% gain for the day, boosting the Canadian dollar of oil commodities as the pair struggled at 1.2700 ahead of the New York session opening.

Meanwhile, the US Census Bureau released new home sales for August, which rose to 0.74 million better than the 0.70 million forecast and 0.708 million from the previous reading. The US dollar index did not show any reaction to the report and, at press time, was trading at 93.29, an increase of 0.23%.

In the next week, the Canadian economic agenda, on Thursday, will release the Gross Domestic Product for July expected at 0.7% on a monthly basis. Meanwhile, the September manufacturing marking PMI forecast at 57.2 will be released on Friday.

In the US, on Monday, the US Census Bureau will release durable goods orders for August, which are expected to increase by 0.6%. In addition, orders for non-defensive capital goods, excluding aircraft, will also be released.

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