- USD/CAD continues to gain ground ahead of the FOMC policy decision.
- Crude oil prices dropped to two-month lows; weakening the Loonie Dollar.
- Canada’s GDP experienced no growth, remaining flat at 0.0% in August.
USD/CAD attempts to extend the gains for the second consecutive day on the back of improved risk appetite ahead of the US Federal Reserve (Fed) monetary policy decision. The spot price trades slightly higher near 1.3880 during the Asian session on Wednesday.
The US Dollar Index (DXY) received a boost from increased US Treasury yields on Tuesday, hovering around 106.70 with the 10-year US bond yield sitting at 4.90%, by the press time. Market sentiment leans towards the expectation that the US Fed will maintain the current interest rate at 5.5% in the Wednesday meeting. If there's a hawkish statement from the Federal Open Market Committee (FOMC) regarding the future trajectory of interest rates, it could potentially strengthen the US Dollar (USD).
The conflict between Israel and Hamas has raised concerns about potential disruptions in the oil supply from the Middle East. Despite these worries, Crude oil prices have fallen to two-month lows putting pressure on the Canadian Dollar. Western Texas Intermediate (WTI) trades below $81.00 per barrel at the time of writing.
The release of Canada’s Gross Domestic Product (GDP) data from Statistics Canada on Tuesday, revealed that the economy experienced no growth, remaining flat at 0.0% in August. This result contradicts market predictions, which anticipated a 0.1% growth during the same period. Furthermore, S&P Global Manufacturing PMI will be eyed for gaining more cues on Canada’s economic scenario.
USD/CAD: additional levels to watch
|Today last price||1.3876|
|Today Daily Change||0.0001|
|Today Daily Change %||0.01|
|Today daily open||1.3875|
|Previous Daily High||1.3892|
|Previous Daily Low||1.3814|
|Previous Weekly High||1.3881|
|Previous Weekly Low||1.3661|
|Previous Monthly High||1.3892|
|Previous Monthly Low||1.3562|
|Daily Fibonacci 38.2%||1.3862|
|Daily Fibonacci 61.8%||1.3844|
|Daily Pivot Point S1||1.3828|
|Daily Pivot Point S2||1.3782|
|Daily Pivot Point S3||1.375|
|Daily Pivot Point R1||1.3907|
|Daily Pivot Point R2||1.3939|
|Daily Pivot Point R3||1.3985|
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