- USD/CAD is seeing mild gains after settling flat on Tuesday.
- US Dollar Index steadies at 94.00.
- US Manufacturing and Services PMI data up next.
The USD/CAD settled at 1.3300 on Tuesday flat on the day before ticking higher Wednesday. The pair trades +0.15% at 1.3323.
US PMI data in focus
Given the lack of fundamental factors, the USD’s will drive USD/CAD’s movements.
The US Dollar Index (DXY) rallied 0.5% on Tuesday reaching94.25, in almost 2 months on Wednesday. However, improved market mood, reflected by gains in European equity indexes, is limiting DY upside.
DXY is treading water at 94.00 Ahead of the IHS Markit’s preliminary Manufacturing and Services PMI data for September Federal Reserve Chair Jerome Powell is due to testify before Congress at 1400 GMT. In the previous session, Powell made no comments on policy outlook in his testimony before the House Financial Services Committee.
On the other hand, crude oil prices are holding steady on Wednesday, offering no directional clues to USD/CAD. West Texas Intermediate (WTI) ticked up slightly on Tuesday and trades + 0.55% at $39.95. Looking ahead, the US Energy Information Administration (EIA) will release its weekly Crude Oil Inventory