USD/CAD hovers around 1.3560 with a negative bias amid higher Crude prices

USD/CAD could lose ground on stronger Crude prices on Wednesday.
WTI price gains support due to concerns over a shortage of supply.
US Dollar faces challenges after Fed officials made dovish comments.

Akhtar Faruqui FXStreet

USD/CAD seems to move in the negative direction for the second consecutive session, edging lower to near 1.3560 during the Asian session on Wednesday. The strength of the Crude oil prices contributes support for the Canadian Dollar (CAD), consequently, undermining the USD/CAD pair.

Western Texas Intermediate (WTI) oil price hovers around $84.80, near Wednesday's highest since October 2023. The increase in WTI price is supported by the weakening US Dollar and concerns over supply due to geopolitical uncertainties.

Moreover, the weaker US Dollar Index (DXY) applies downward pressure on the USD/CAD pair. DXY faces challenges after Federal Reserve (Fed) officials made dovish comments. Cleveland Fed President Loretta Mester expressed expectations of rate cuts later this year, while San Francisco Fed President Mary Daly deemed three rate cuts in 2024 "reasonable," pending further convincing evidence.

On Tuesday, US February JOLTS Job Openings rose to 8.756 million from the previous figure of 8.748 million, surpassing market expectations. Additionally, Factory Orders increased by 1.4% month-on-month in February from a 3.8% decline in the prior reading.

Market participants are anticipated to closely monitor Canadian Import and Export data on Thursday, along with labor data scheduled for release on Friday. In the United States (US), attention will be on the ADP Employment Change and ISM Services PMI data on Wednesday. Additionally, Federal Reserve Chairman Jerome Powell is set to deliver a speech on the US economic outlook at the Stanford Business, Government, and Society Forum in Stanford.

USD/CAD

Overview
Today last price	1.3564
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3567

Trends
Daily SMA20	1.3534
Daily SMA50	1.3511
Daily SMA100	1.3491
Daily SMA200	1.35

Levels
Previous Daily High	1.3585
Previous Daily Low	1.3556
Previous Weekly High	1.3614
Previous Weekly Low	1.3525
Previous Monthly High	1.3614
Previous Monthly Low	1.342
Daily Fibonacci 38.2%	1.3567
Daily Fibonacci 61.8%	1.3574
Daily Pivot Point S1	1.3554
Daily Pivot Point S2	1.3541
Daily Pivot Point S3	1.3526
Daily Pivot Point R1	1.3582
Daily Pivot Point R2	1.3598
Daily Pivot Point R3	1.3611

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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