Despite falling oil prices, USD/CAD holds gains over 1.3400 as it waits for US data and FOMC minutes.

VOT Research Desk

The USD/CAD pair experiences some buying at the 1.3360-1.3355 range and makes a respectable bonce from the weekly low reached on Wednesday.

During the early North American session, the pair makes a new daily high close to the 1.3425 area, and for the time being, it appears to have halted this week’s corrective decline from close to the psychological 1.3500 level. The commodity-linked loonie is predicted to weaken due to a recent level down in crude oil prices, which will also act as a tailwind for the USD/CAD pair.

Investors will be on the lookout for hints about the Fed’s future rate hike plans and policy outlook.

This will have a significant impact on the short-term USD price dynamics and give the USD/CAD pair new directional momentum.

The US economic docket, which includes the publication of Durable Goods Orders, Weekly Initial Jobless Claims, flash PMIs, and New Home Sales data, may be at risk as the important event approaches.