USD/CAD struggles to hold above 1.2500, eyes on FOMC Minutes

  • USD/CAD rose above 1.2500 during the American session.
  • US Dollar Index stays in the positive territory above 92.60.
  • WTI extends slide, trades below $72 after earlier rebound.

After moving sideways around 1.2450 during the European trading hours, the USD/CAD pair gained traction in the second half of the day and reached its highest level since late April at 1.2519. However, the pair erased the majority of its daily gains and was last seen trading at 1.2475, where it was up only 0.1% on a daily basis.

DXY clings to modest gains ahead of FOMC minutes

The renewed USD strength in the early American session and falling crude oil prices helped USD/CAD push higher. Following Tuesday’s sharp decline, the barrel of West Texas Intermediate slumped to its lowest level since June 18 at $71.06 on Wednesday before staging a modest rebound. At the moment, WTI is down 2.5% on the day at $71.90.

On the other hand, the US Dollar Index (DXY) advanced to a fresh three-month high of 92.84 as the USD continued to find demand with American traders entering the market. Currently, the DXY is up 0.15% at 92.67.

The only data from the US revealed on Wednesday that the number of job openings on the last business day of May was little changed at 9.2 million. Later in the session, the FOMC’s June meeting minutes will be looked upon for fresh impetus. Investors will look for fresh clues regarding the timing of tapering. In case the publication reaffirms the hawkish tilt in the FOMC’s policy outlook, the USD is likely to gather further strength and vice versa.

Technical levels to watch for

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