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USD/CAD drops 100 pips on Tuesday, extending its weekly losses to almost 2%. Broad US dollar weakness and high crude oil prices undermine the USD/CAD, a tailwind for the CAD.
The US economy is slowing as the Fed wishes, as portrayed by the JOLTs report missing estimations. Fed policymakers continue to emphasize the need for higher rates amidst recent US data showing the economy is slowing.
The USD/CAD pair extended its losses for two-consecutive trading days, courtesy of a soft US dollar and rising oil prices, which underpinned the commodity-linked Canadian dollar amid a risk-on impulse.
Therefore, the USD/CAD is trading at 1.3553 after hitting a daily high of 1.3664, at around the 200-hour EMA, before the major tumbled towards the 1.3530s area.
On Tuesday, investors’ sentiment improved. US economic data released by the US Department of Labor reported that vacancies edged lower from around 11.239M in July to 10.053M in August. In the meantime, the US Department of Commerce revealed that factory orders for August remained unchanged at 0%, after July’s 1% fall.
