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The US dollar is pulling lower on Monday’s US trading session, giving away previous gains after having peaked at 1.3685. On the daily chart, however, the pair remains moderately positive, on track to close a three-day rally from 1.3495 lows last week.
The Federal Reserve is attracting investors’ attention this week. The US central bank is widely expected to deliver the fourth consecutive jumbo hike next Wednesday, which is keeping the greenback moderately bid across the board at the start of the week.
US macroeconomic data, however, have not been dollar supportive on Monday. The Chicago Purchasing Managers’ Index deteriorated for the second consecutive month -to 45.2 in October from 45.7 in September- and the Dallas fed Manufacturing Index confirmed the lackluster perspectives of the sector, declining to a -19.4 reading in October from -17.2 in September.
On the other hand, the Canadian dollar has failed to capitalize on the recent USD weakness, weighed by lower oil prices. The US benchmark WTI is dropping nearly 2% on the day, amid concerns about the weak Chinese manufacturing data and its potential impact on demand.
