- The loonie underperformed Wednesday, DXY
- US: Economic data disappoint expectations, FOMC minutes at 19:00 GMT.
He USD / CAD it bounced from the lowest level since April 2018 at 1.2628 to 1.2722, before stabilizing around 1.2700. The pair is trading modestly higher during the day after a widespread recovery in the US dollar, even as Wall Street jumps.
Market participants await the release of the FOMC Minutes. The US economic report disappointed expectations, particularly ADP employment. The NFP figures will be released on Friday and also the official labor report in Canada.
The dollar gained momentum despite US data driven by rising US yields. The movements in the bond market take place after the election for the United States Senate. The loonie is also falling against the NZD and the AUD amid appetite for risk, even as crude oil prices hit new highs.
From a technical perspective, the USD / CAD trend is bearish, but in the very short term, the rebound from lows eased the downward pressure. A rally above 1.2735 would offer further support for the USD which could rise further to test 1.2770. On the other hand, the loon needs a consolidation below 1.2670 to expose the daily low.