USD/CAD corrects to test bear's commitments at 1.35 the figure

 USD/CAD has been on consolidation in late North American trade while oil prices firm that has helped the Canadian dollar correct from its weakest level in more than two years. At the time of writing, the pair is up come 0.3% having traveled from a low of $1.3409 to a high of 1.3544 on the day.

The greenback has otherwise been supported by the Federal Reserve's hawkish outlook for interest rates and after Russian President, Vladimir Putin ordered the country's first mobilization since World War Two. On safe haven demand, DXY, which measures the currency against a basket of six counterparts hit a high of 111.814, the highest level since mid-2002.

A jump in oil followed news of China's plans to ramp up its exports of refined products, as per Reuters news that said ''Chinese refiners are expecting the government to issue export quotas for 15-million tonnes of export quotas for refined products covering the remainder of the year as Beijing looks to bolster exports from the world's No.1 oil importer.''

Additionally, there have been concerns over a disruption to oil markets caused by sanctions leveled against Russia. Russian president Putin said in a late Tuesday speech he planning to mobilize an additional 300,000 troops to bolster the country's flagging war on Ukraine, where it has surrendered swathes of occupied territory in recent fighting, raising

Elsewhere, supporting the greenback, the Federal Reserve's 75 basis-point increase to US interest rates on Wednesday remains an issue for the market, as the central bank looks to combat inflation by slowing the economy and reducing demand.

Fed key takeaways

• US Federal Reserve interest rate decision +75 bps vs +75 bps expected.
• Target Range stands at 3.00% - 3.25%.
• Interest Rate on Reserves Balances raised by 75Bps to 3.15% from 2.40%.
• The policy vote was unanimous. 
• Fed anticipates ongoing hikes will be appropriate, prepared to adjust policy as appropriate.
• Board members are highly attentive to inflation risks and strongly committed to returning inflation to 2%.
• Recent indicators point to modest growth in spending and production.
• Ukraine war creates additional upward pressure on inflation, weighing on global economic activity.
• Inflation remains elevated, reflecting pandemic-related imbalances, and higher food & energy.
• Job gains have been robust, the unemployment rate has remained low.
• The median forecast shows rates 4.4% at end-2022.
• Futures after FOMC decision imply traders see 89% chance fed raising rates at another 75bps at the November meeting.

Next on the agenda, we have Canada's retail sales data for July, due on Friday. This could offer markets more to go on as it assesses the Bank of Canada's outlook on rates.