• Economy related US political uncertainty weighs on the greenback.
  • Western Texas Intermediate is advancing, underpinning the Canadian dollar.
  • Federal Reserve economic reading indicator, the Core PCE was unchanged at 3.6%.

The USD/CAD trims gains for the second day in a row, trading at 1.2661. slightly down 0.14% during the day at the time of writing.

The market sentiment is mixed. Worldwide rising inflationary pressures, even though they are “transitory,” start to worry central bankers. Additionally, the slowing recovery of the labor market and debates in the US Senate and the House regarding US President Joe Biden’s economic agenda add pressure on the US dollar.

Major US equity indices are gaining between 0.04% and almost one percent, while the US Dollar Index, which measures the buck’s performance versus a basket of six currencies, is down 0.21%, sitting at 94.05.

Western Texas Intermediate price weighs on the USD/CAD pair

WTI, which influences the Canadian oil export economy, is advancing 0.22%, is trading at $75.11, boosting the Loonie.

Putting this aside, in the Canadian economic docket, the Gross Domestic Product for July contracted 0.1%, better than the 0.2% decrease expected by the market. In contrast, the Markit Manufacturing PMI for September declined two-tenths from August’s report to 57 from 57.2.

On the US front, the favorite Fed’s reading for inflation, the Core Personal Consumption Expenditure Index for August, increased by 3.6% annually basis, as expected. Further, the ISM Manufacturing PMI for September rose to 61.1, better than the 59.6 expected by analysts. Expanded demand for factory goods bolstered the reading. 

Moreover, the University of Michigan Consumer Confidence edged higher to 72.8 more than 71 foreseen. Even though it remained near pandemic lows, Americans are slightly more optimistic about current economic conditions.

KEY LEVELS TO WATCH

USD/CAD

Overview
Today last price 1.2662
Today Daily Change -0.0018
Today Daily Change % -0.14
Today daily open 1.268
 
Trends
Daily SMA20 1.2682
Daily SMA50 1.2623
Daily SMA100 1.2454
Daily SMA200 1.2521
 
Levels
Previous Daily High 1.2763
Previous Daily Low 1.263
Previous Weekly High 1.2896
Previous Weekly Low 1.2634
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2681
Daily Fibonacci 61.8% 1.2712
Daily Pivot Point S1 1.2619
Daily Pivot Point S2 1.2558
Daily Pivot Point S3 1.2485
Daily Pivot Point R1 1.2752
Daily Pivot Point R2 1.2824
Daily Pivot Point R3 1.2886

 

 

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