- USD/CAD remains muted at the starting of the fresh trading week.
- US Dollar Index slips below 93.00 following FOMC Chairman Powell’s speech.
- The Canadian dollar gains momentum as oil picks up after a storm hits US oil ports.
After touching the high of 1.2842 in the previous week, USD/CAD is consolidating gains in the early Asian trading hours on Monday. The pair confides in a very close trading band with less than 10-pips movement.
At the time of writing, USD/CAD is trading at 1.2624, up 0.02% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, trades near 92.60 with 0.47% losses.
The movement in the greenback is contributed by the Fed’s Chair Jerome Powel’s speech at the Jackson Hole Economic Symposium. He agreed to start reducing asset purchases this year but he refrained from delivering a timeline.
The gains were capped on the mixed economic data, where US Personal Income and Spending rose in July and core PCE inflation eased for the second straight month.
On the other hand, the Canadian dollar managed to gain on higher crude oil prices.
The barrels of West Texas Intermediate (WTI) trades at $68.98 with 0.36% losses, remained unfazed after Hurricane Ida made landfall on Sunday as a category 4 storm near Port Fourchon.
As for now, traders wait for the Canadian Current Account data, and US Pending Home Sales data to gauge the market sentiment.