USD/CAD gauges cushion around 1.2820 as DXY weakens, oil rebounds from $105.00
|- USD/CAD is eyeing more losses as investors have underpinned risk-sensitive assets.
- Oil prices are attempting to establish themselves above $105.00.
- The BOC could elevate its interest rates further amid rising inflationary pressures.
The USD/CAD pair is juggling in a 10-pip range in the early European session as the positive market sentiment has rebounded sharply and risk-perceived assets are gaining traction. The asset is expected to tumble further, following its current bearish momentum, which was triggered after failing to breach the psychological resistance of 1.3000.
Following the footprints of the UK and Europe, Canada’s statistics agency also released an elevated figure for the Consumer Price Index (CPI) on Wednesday. Statistics Canada reported the annual CPI figure at 6.8%, higher than the forecasts and the prior print of 6.7%. While the annual core Bank of Canada (BOC) CPI that excludes foods and energy bills has landed at 5.7%, much higher than the consensus of 5.4%. It looks like the uptick in the BOC’s rate cycle has failed to weigh even a minute pressure on the price pressures.
On the oil front, the oil prices are trying to establish themselves above $105.00 despite rising demand worries. Higher inflation figures from the Western cartel is indicating a slump in the global growth forecasts. A meaningful increase in the oil prices will put more pressure on the greenback.
Meanwhile, the US dollar index (DXY) is eyeing more losses on improvement in the risk appetite of investors. The asset is performing vulnerable on Thursday and is expected to slide further to 103.40. In today’s session, US Initial Jobless Claims (IJC) will remain in focus. The weekly jobless claims are expected to land at 200k against the prior print of 203k.
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