- USD/CAD seems biased to move downward despite the weakening in Crude oil prices.
- WTI prices lose ground on an unexpected delay in an upcoming OPEC+ meeting.
- US economic data turn investors to perceive persistent inflation in the country.
USD/CAD seems to extend its losses for the third consecutive session, trading slightly lower near 1.3680 during the Asian hours on Thursday. However, the Canadian Dollar (CAD) dragged down on Wednesday due to the decline in Crude oil prices. Additionally, the improved US Dollar (USD) contributed to underpinning the USD/CAD pair as the economic data from the United States (US) turned investors to perceive persistent inflation in the country, coupled with a decelerating economy.
Western Texas Intermediate (WTI) extends losses, trading lower near $76.10 per barrel, by the press time. Crude oil prices are facing downward pressure due to an unexpected delay in an upcoming OPEC+ meeting, causing uncertainty about the extent of further supply cuts by the producer group.
The US Dollar Index (DXY) retraces its gains after two consecutive days, trading lower around 103.70. However, the stable US Treasury yields might have helped the Greenback hold its ground, with the 10-year US bond yield closing at 4.40%. The index extended the gains after the release of moderate US economic data but lost momentum amidst higher equity prices.
US Durable Goods Orders in October fell by 5.4% against the anticipated 3.1%. However, the University of Michigan Consumer Sentiment Index for November posted a reading of 61.3, surpassing the projected 60.5 figure. Additionally, US Jobless Claims data indicated a larger-than-anticipated decline for the week ending on November 17, with Initial Claims dropping to 209K from 233K prior.
Investors are likely to turn their attention to Friday’s Retail Sales figures from Canada. Note that US markets will be closed on Thursday for Thanksgiving Day. On Friday, the US is set to release the preliminary S&P Global Manufacturing and Services PMI for November, both with expectations pointing towards a decline.
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