Ella 
On Wednesday, USD/CAD rose for the fifth consecutive day, with the Asian market hovering near a one-week high of 1.3330.
Crude prices remain subdued, near two-week lows, as worries that tensions in the Red Sea will disrupt supplies have eased, coupled with weak economic data from key importer China. At the same time, Bank of Canada (BOC) Governor Tiff Macklem recently said that the central bank may also start cutting interest rates sometime in 2024, which weakened the commodity-linked Canadian dollar and made USD/ A “tailwind” for the Canadian dollar pair.
On the other hand, the U.S. dollar (USD) entered a bullish consolidation phase after recording its biggest one-day gain since October on Tuesday amid concerns about the prospect of an early interest rate cut by the Federal Reserve (Fed). This, along with sharply higher overnight U.S. Treasury yields and cautious market sentiment, is seen as positive for the safe-haven US dollar and provides some support for the USD/CAD pair.
Investors will now turn their attention to U.S. economic data, with the ISM Manufacturing PMI and JOLTS job openings data due later in the North American session. However, the focus will still be on the Fed meeting minutes, which will be closely watched by the market for clues on when the central bank will start cutting interest rates. This will therefore drive dollar demand. Apart from this, oil price dynamics also affect the USD/CAD currency pair.
