USD/CAD retreats below 1.3000 ahead of FOMC Minutes
- USD/CAD lost its traction after recovering to 1.3030.
- US Dollar Index fell below 92.00 after mixed macroeconomic data releases.
- WTI trades at fresh multi-month highs near $46.
The USD/CAD pair rose to 1.3030 in the early American session but lost its traction pressured by the renewed USD weakness and rising crude oil prices. As of writing, the pair was down 0.05% on a daily basis at 1.2987.
The mixed macroeconomic data releases from the US failed to help the greenback gather strength against its rivals. The US Bureau of Economic Analysis left its annual Q3 GDP growth estimate unchanged at 33.1% and reported that Personal Spending in October increased by 0.5% on a monthly basis.
Other data revealed that the US' trade deficit widened to $80.29 billion from $79.4 billion and the weekly Initial Jobless Claims rose to 778,000 from 748,000 last week. At the moment, the US Dollar Index is down 0.27% on the day at 91.98.
Oil rally regains momentum
On the other hand, the weekly report published by the US Energy Information Administration (EIA) showed that crude oil stocks declined by 0.75 million barrels in the week ending November 20 and provided a boost to oil prices. The barrel of West Texas Intermediate (WTI), which closed the previous five days in the positive territory, is currently trading at its highest level since March at $45.95, gaining 2.6% on a daily basis.
Later in the session, the FOMC will publish the minutes of its November meeting. However, the market reaction is likely to remain muted with trading conditions thinning out ahead of the Thanksgiving Day holiday in the US.
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.
