USD/CAD posts modest gains near mid-1.2500 as oil rebound loses steam
- USD/CAD stays in the positive territory following Tuesday's decline.
- WTI is losing more than 1% on Wednesday, trades below $68.
- US Dollar Index holds above 93.00 ahead of CPI data.
The USD/CAD pair closed in the negative territory on Tuesday as the sharp rebound witnessed in crude oil prices helped the commodity-related CAD outperform its American counterpart. However, the pair didn't have a difficult time limiting its losses on Wednesday and was last seen rising 0.15% on the day at 1.2540.
WTI turns south following Tuesday's recovery
On Tuesday, the risk-positive market environment helped the barrel of West Texas Intermediate (WTI) gains more than 2%. Nevertheless, WTI struggled to preserve its bullish momentum amid a lack of fundamental drivers and reversed its direction on Wednesday. As oıf writing, WTI was down 1.4% on a daily basis at $67.50.
On the other hand, the US Dollar Index (DXY) continues to edge higher after posting gains for the previous three trading days. Currently, the DXY is up 0.12% at 93.18.
Later in the session, the US Bureau of Labor Statistics will publish the July inflation report. Investors expect the Consumer Price Index (CPI) to decline to 5.3% on a yearly basis in July from 5.4%.
Additionally, Atlanta Federal Reserve Bank President Raphael Bostic, who said on Monday that the Fed could start reducing asset purchases between October and December, will be delivering a speech. There won't be any high-tier macroeconomic data releases featured in the Canadian economic docket.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
