- USD/CAD falls for second straight day on Wednesday.
- WTI extends rebound, closes in on $51 handle.
- US Dollar Index stays calm below 99 ahead of FOMC Chairman Powell's testimony.
The USD/CAD pair failed to hold above the 1.3300 mark and erased 30 pips on Tuesday before stretching lower. As of writing, the pair was trading at 1.3268, losing 0.15% on a daily basis.
WTI approaches $51
The recovery seen in crude oil prices amid easing concerns over the coronavirus outbreak's impact on the global oil demand helps the commodity-sensitive CAD find demand. Ahead of the OPEC's monthly report and the US Energy Information Administration's (EIA) weekly oil market report, the barrel of West Texas Intermediate is up 1.78% on the day at $50.80.
On the other hand, the uninspiring performance of the greenback doesn't allow the pair to stage a rebound. The US Dollar Index, which advanced to its highest level since October at 98.95 on Tuesday, is flat on the day at 98.75.
The economic docket won't be featuring any significant macroeconomic data releases from the US or Canada and crude oil prices are likely to continue to impact the pair's movements.
Later in the session, FOMC Chairman Powell will deliver his remarks on the second day of his testimony before the Senate Banking Committee. Powell on Tuesday said that it was too early to determine the impact of the coronavirus outbreak on the US economy and reiterated that the current policy stance was appropriate.
Technical levels to watch for
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