USD/CAD retreats to 1.3150 area as DXY pares gains
- USD/CAD turned south after failing to break above 1.3200.
- US Dollar Index returned to 93.00 area following a spike in early American session.
- WTI continues to trade with modest gains above $43.
The USD/CAD pair rose to a daily high of 1.3206 during the early American session but staged a sharp U-turn in the last hour. As of writing, the pair was down 0.12% on a daily basis at 1.3152.
DXY loses momentum amid risk flows
A positive shift in the market sentiment, as reflected by strong gains witnessed in Wall Street's main indexes, seems to be weighing on the greenback. The US Dollar Index, which climbed to a daily high of 93.36, reversed its direction and was last seen flan on the day at 93.00. Meanwhile, the S&P 500 Index notched a new record-high of 3,457 in the last minutes.
Moderna reported on Wednesday that its experimental coronavirus vaccine showed similar immune responses in young and old adults in early-stage trials and revived optimism for effective treatment.
Earlier in the day, the US Census Bureau reported that Durable Goods Orders in July increased by 11.2% on a monthly basis. Although this print surpassed analysts' estimate of 4.3% by a wide margin, the positive impact on the USD remained short-lived.
Meanwhile, oil production halt due to Laura hurricane in the US caused crude oil prices to push higher and helped the commodity-related loonie gather strength against its peers.
On Thursday, FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium will be watched closely by market participants.
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.
