Ella 
In the Asian market on Tuesday, USD/CAD extended losses for the third consecutive trading day, falling to near the psychological mark of 1.3600. A rebound in crude oil prices and positive market sentiment boosted the Canadian dollar.
WTI oil prices broke a four-day losing streak and are currently hovering around $75.30 a barrel. The focus turns to the upcoming important meeting of the OPEC+ organization, which is widely expected to decide on deepening and extending oil production cuts.
On Tuesday, the U.S. dollar index hit 103.07, its lowest since late August. Driven by the fall in U.S. bond yields, the downward trend continues, especially the 2-year U.S. bond yield and the 10-year U.S. bond yield, which currently fall to 4.87% and 4.40% respectively.
The dollar is under downward pressure as investors factor in the Federal Reserve (Fed) cutting interest rates by nearly 85 basis points in 2024. In addition, the latest report from the U.S. Census Bureau showed that new home sales in October were 679,000 units, a decrease of 5.6% from the previous month and lower than the expected value of 725,000 units, which also strengthened the market’s risk sentiment.
Looking ahead, investors are likely to focus on Canada’s gross domestic product (GDP) on Thursday, followed by changes in employment numbers on Friday. Meanwhile, U.S. data will be on focus on Tuesday, including the housing price index and the Conference Board consumer confidence index. In addition, speeches by Federal Reserve (Fed) officials will provide valuable signals about the Fed’s views on the economic situation.
