USD/CAD appears to be heading lower for a second consecutive session on Wednesday in Asia, fluctuating lower to around 1.3560. Strengthening crude oil prices provided support for the Canadian dollar, weighing on USD/CAD.
WTI oil prices are hovering near $84.80, close to their highest since October 2023 on Wednesday. A weak U.S. dollar and geopolitical uncertainty have led to crude oil supply concerns supporting WTI oil prices.
In addition, a weaker US dollar index also put downward pressure on the USD/CAD currency pair. The U.S. dollar index faced challenges after dovish comments from Federal Reserve officials. Cleveland Fed President Loretta Mester expressed expectations for a rate cut later this year, while San Francisco Fed President Mary Daly thought three rate cuts in 2024 would be “appropriate,” but further Compelling evidence.
On Tuesday, U.S. JOLTs job vacancies rose to 8.756 million from the previous value of 8.748 million, exceeding market expectations. Additionally, factory orders rose 1.4% monthly in February, after falling 3.8% in the previous month.
