- USD/CAD looks to close the day at its highest level since early August.
- US Dollar Index extends rally, settles above 94.00.
- WTI erased a large portion of its daily gains.
The USD/CAD pair spent the first half of the day fluctuating in a tight range above 1.3300 but regains its traction during the American trading hours. After climbing to its highest level since August 10th at 1.3376, however, the pair has gone into a consolidation phase and was last seen gaining 0.45% on the day at 1.3361.
USD continues to outperform its rivals
The broad-based USD strength fueled USD/CAD's rally on Wednesday. Supported by upbeat macroeconomic data releases from the US, the US Dollar Index (DXY) advanced to its highest level in nearly two months at 94.31. At the moment, the DXY is up 0.3% on the day at 94.24.
The IHS Markit's flash estimate showed on Wednesday that the Manufacturing PMI in September improved to 53.5 to beat the market expectation of 53.2. Moreover, the Composite PMI arrived at 54.4 to show that the business activity in the private sector continued to expand at a robust pace. Finally, the Housing Price Index rose by 1% in July and surpasses analysts' estimate for an increase of 0.5%.
On the other hand, the weekly published by the US Energy Information Administration revealed that crude oil stocks in the US declined by 1.6 million barrels in the week ending September 18th. With this print coming in higher than the market estimate for a decrease of 2.3 million barrels, crude oil prices lost traction. The barrel of West Texas Intermediate (WTI), which rose to a daily high of $40.70, erased the majority of its gains and is currently trading with small gains at $39.80, making it hard for the loonie to stage a rebound.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.