Ella 
In the Asian market on Wednesday, USD/CAD broke two consecutive losses and fluctuated higher to around 1.3590. The U.S. dollar (USD) was strong, while falling crude oil prices weighed on the Canadian dollar. This situation supports the USD/CAD currency pair.
As of press time, WTI oil prices fell to around $80.70. WTI oil prices fell as the American Petroleum Institute’s weekly crude oil inventories increased by 9.337 million barrels in the week ended March 22, compared with a decrease of 1.519 million barrels previously.
Carolyn Rogers, senior deputy governor of the Bank of Canada, warned that underinvestment, competition and the underutilization of the skills of new Canadians are contributing to Canada’s low productivity. In addition, Rogers also emphasized that people are worried that the current inflation situation may pose a more serious threat than in recent decades.
The U.S. dollar index (DXY) experienced its second consecutive session of gains, driven by risk aversion. However, the decline in Treasury yields may be due to the market maintaining expectations that the Federal Reserve may cut interest rates. This sentiment could halt the dollar’s gains.
