USD/CAD rises to fresh weekly highs around 1.2750 on broad US dollar strength
- Market sentiment is upbeat, though a stronger US dollar underpins the USD/CAD.
- The US Dollar Index reaches a new yearly high at 94.27.
- US Pending Home Sales data was mixed, ignored by the market.
- Fed’s Chairman Jerome Powell will be in an ECB panel at 15:45 GMT.
The USD/CAD is advancing for the second consecutive day is trading at 1.2748, up 0.49% during the day at the time of writing. As the New York session progresses, the market sentiment is upbeat as European and US equity markets are in the green, despite Asian equity indices finishing with losses. In addition, the Chinese real-estate giant Evergrande, raised $1.75 US billion, selling shares to Shenyang Shengjing Finance Investment Group Co., calming investors.
US Dollar Index hits a new yearly high
The US Dollar Index (DXY), which measures the greenback’s performance against a basket of six peers, is climbing 0.57%, at 94.26, testing new yearly highs, underpinning the USD/CAD, which printed a weekly high at 1.2758.
West Texas Intermediate (WTI) is staging a comeback after dipping to below $73.56, is trading at $75.54, up 1.88%, putting a lid on the USD/CAD price, as crude oil accounts for almost 20% of Canadian exports.
US Pending Home Sales data mixed
In the US, the National Association of Realtors revealed that Pending Home Sales for August rose by 8.1%, better than the 1.4% foreseen on a monthly basis. Concerning the year-over-year reading, sales dropped 8.3%, against an increase of 14.5% for the period.
In the Canadian economic docket, Statistics Canada released the Raw Material Price Index for August, which decreased 2.4% worse than July’s 2-2% increase, whereas Industrial Production Price for the same month increase to -0.3%, against the -0.4% in the previous.
Later on, Federal Reserve Chairman Jerome Powell will be in an ECB panel discussion at 15:45 GMT.
KEY TECHNICAL LEVELS TO WATCH