USD/CAD Remains Stable Near The Weekly High As Traders Eagerly Await The Speech Of Fed Chair Powell
On Wednesday, USD/CAD trades with a positive bias for the third consecutive day. As bearish crude oil prices persist, they exert a tailwind on the Loonie. The upside is restrained by USD price action prior to Fed Chair Powell's speech.

Wednesday marks the third consecutive day that investors are interested in the USD/CAD pair, which trades during the Asian session near the upper limit of its weekly range, between 1.3770 and 1.3775.
Crude oil prices fall to their lowest level since late July, complementing the overnight decline below a technically significant 200-day simple moving average (SMA). Consequently, this is perceived to weaken the commodity-linked Loonie and provide a tailwind for the USD/CAD pair. In contrast, the United States Dollar (USD) consolidates its robust recovery gains that were initiated from a multi-week low earlier this week, with minimal impact on spot prices.
In the midst of ambiguity surrounding the trajectory of interest rate hikes by the Federal Reserve (Fed), the strong depreciation in US Treasury bond yields and the prolonged upswing in US equities emerge as significant impediments for the safe-haven dollar. The market perception that the US central bank is nearing the conclusion of its policy tightening campaign was reaffirmed by the milder monthly employment report for October that was released last Friday.
Nevertheless, a number of influential FOMC members acknowledged the resilience of the US economy this week and left the door open for further rate increases. Therefore, the attention is still firmly set on the forthcoming speech by Fed Chair Jerome Powell in the early North American session. This speech will be thoroughly analysed in search of indications regarding the subsequent course of policy. This, consequently, will stimulate USD demand and give the USD/CAD pair renewed momentum.
When there is a lack of significant economic data that can move the market, such as those from the United States or Canada, speculators will rely on the volatility of oil prices to identify short-term opportunities. However, the underlying structure appears to be in favour of investors and bolsters expectations for the USD/CAD pair to extend its three-day-long uptrend from the 1.3630-1.3625 area, which was close to a three-week low reached on Monday.
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