- USD/CAD is edging lower for the third straight day.
- WTI trades in a tight range near $53 on Thursday.
- US Dollar Index holds near 90.30 as investors await FOMC Chairman Powell's speech.
The USD/CAD pair closed in the negative territory for the second straight day on Wednesday and seems to be having a tough time staging a rebound on Thursday. As of writing, the pair was down 0.15% on the day at 1.2675.
DXY stays in consolidation above 90.00
During the Asian trading hours, reports suggesting that President-elect Joe Biden will unveil a stimulus plan worth around $2 trillion provided a boost to the US Treasury bond yields and helped the greenback stay resilient against its rivals. The US Dollar Index (DXY) is currently flat on the day at 90.35 as investors remain on the sidelines ahead of FOMC Chairman Jerome Powell's speech at 1730 GMT.
Powell will be speaking at an online event and market participants will look for fresh clues regarding possible adjustments to the Federal Reserve's asset purchase program. Since the beginning of the year, T-bond yields have been impacting the USD's market valuation and a sharp reaction to Powell's remarks in yields could drive USD/CAD's movements in the second half of the day. Moreover, the US Department of Labor's weekly Initial Jobless Claims will be featured in the US economic docket as well.
Meanwhile, the barrel of West Texas Intermediate (WTI) is trading in a narrow band near $53 on Thursday. If Biden's plan includes additional direct payments to Americans, crude oil prices could push higher on an improved energy demand outlook and help CAD gather strength against its rivals.
Technical levels to watch for
|Today last price||1.268|
|Today Daily Change||-0.0020|
|Today Daily Change %||-0.16|
|Today daily open||1.27|
|Previous Daily High||1.2747|
|Previous Daily Low||1.268|
|Previous Weekly High||1.2798|
|Previous Weekly Low||1.263|
|Previous Monthly High||1.301|
|Previous Monthly Low||1.2688|
|Daily Fibonacci 38.2%||1.2706|
|Daily Fibonacci 61.8%||1.2722|
|Daily Pivot Point S1||1.2671|
|Daily Pivot Point S2||1.2643|
|Daily Pivot Point S3||1.2605|
|Daily Pivot Point R1||1.2738|
|Daily Pivot Point R2||1.2776|
|Daily Pivot Point R3||1.2804|
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.