USD/CAD fades bounce off intraday low around 1.2065, down 0.05% on a day, during Wednesday’s Asian session. In doing so, the Loonie pair refrains from following downbeat oil prices and the previous day’s up-moves while concentrating on mildly upbeat market sentiment.
S&P 500 Futures print 0.20% intraday gains following a downbeat performance of the Wall Street benchmarks. Although no fresh major catalysts could be spotted for the recent optimism, the US removal of Xiaomi from the blacklist seems to have favored mood.
It’s worth mentioning that the US Federal Reserve (Fed) officials keep turning down the tapering fears while terming the recent jump in inflation as transitory. However, global traders seem to doubt the policymakers by putting a bid under the US bonds. Hence, the US 10-year Treasury yields refreshed the monthly low, which in turn extended the US dollar index (DXY) south-run to a fresh low since early January.
However, the USD/CAD pair took clues from the pullback in oil prices and rose the most in a week the previous day. That said, WTI oil drops 0.17% intraday to $65.81 by the press time, ignoring price-positive inventory data from the American Petroleum Institute (API). Also favoring the quote’s upside on Tuesday could be the downside US data relating to Chicago activity index and CB Consumer Confidence, not to forget the New Home Sales.
Looking forward, the pair traders will keep their eyes on the Fedspeak and may also take clues from the Bank of Canada (BOC) Deputy Governor Timothy Lane as is up for a speech around 17:00 GMT. Should the BOC policymaker reaffirm the central bank’s bullish outlook and praise the latest tapering decision, USD/CAD will have further downside amid the broad US dollar weakness and risk-on mood.
USD/CAD Short (Sell)
ENTER AT: 1.20770