- 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.
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.
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
AUD/USD weakens below 0.6400 ahead of Australian employment data
The AUD/USD pair remains on the defensive near 0.6370 after bouncing off a fresh year-to-date low of 0.6336. The dovish stance by the Reserve Bank of Australia drags the Australian Dollar lower. Traders will closely monitor the Australian November labor market data, along with the US PPI data, which are due later on Thursday.
EUR/USD drops below 1.0500 after US inflation data
EUR/USD stays under pressure and trades below 1.0500 in the American session on Wednesday. The US Dollar stays resilient against its rivals after the data showed that the annual CPI inflation edged higher to 2.7% in November, not allowing the pair to stage a rebound.
Gold skyrockets as US inflation suggests Fed easing ahead
Gold prices prolonged their uptrend on Wednesday following the release of inflation figures in the United States. Expectations that the Federal Reserve would cut interest rates next week were reaffirmed as the disinflation process evolves, yet at a slower pace.
Ethereum eyes new yearly high as whale and institutional holdings increase
Ethereum is up 6% on Wednesday after bouncing off the support level near $3,550. The spot market shows institutional investors and whales maintained a bullish sentiment, potentially scooping up ETH at lower prices during the recent dip.
BTC faces setback from Microsoft’s rejection
Bitcoin price hovers around $98,400 on Wednesday after declining 4.47% since Monday. Microsoft shareholders rejected the proposal to add Bitcoin to the company’s balance sheet on Tuesday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.