USDCAD cut losses, hovers around 1.2625 on firmer oil

• Positive market sentiment boosts the commodity-linked loonie.
• WTI trades above $75.00 for the first time in two months, which benefits the CAD.
• US Durable good orders came better than expected, rose by 1.8%.
• NY Fed’s President Williams said: "Substantial further progress in inflation has been achieved. "

Earlier during the Asian session, the USD/CAD dipped to 1.2610 nearby the psychological 1.2600. However, as the New York session began, it is trimming losses trading at 1.2622, down 0.24% at the time of writing.

The market sentiment is in risk-on mode. The Japanese yen and the Swiss franc, the so-called safe-haven currencies, are down. European stock indices closed in the green. Across the pond, the Dow Jones is up 0.47%, while the S&P 500 and the heavy-tech Nasdaq are down 0.17% and 0.97%, respectively.

Meanwhile, oil prices keep trading higher, boosting the crude oil export-based Canadian economy. Western Texas Intermediate (WTI) is rallying at fresh two-month highs, up 2.05%, currently at $75.35, weighing on the USD/CAD pair.

The US Dollar Index (DXY), which tracks the performance of a basket of six currencies against the buck, is steady up 0.08%, sitting at 93.35.

US Durable Good Orders for August smashed July’s reading

The US Census Bureau revealed that the Durable Good Orders for August increased by 1.8% against the 0.5% in July’s reading. The demand for durable goods has expanded even as capacity shortages and supply chain disruptions frustrate factory productions efforts. 

Further, new orders excluding defense rose by 2.4% against a drop to -0.5% expected. 

On Monday, the New York’s Fed President John C. Williams hit the wires. He said that “It’s clear that we have made substantial further progress on achieving our[Fed’s] inflation goal.” Further, he commented that he expects inflation to come back down to around 2% in 2022.  Regarding the labor market, he added, “there has also been very good progress toward maximum employment,” but remarked that there is still a long way to reach maximum employment.

Later during the American session, Fed’s Governor Lael Brainard will cross the wires

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