- US dollar gains momentum ahead of the FOMC minutes.
- USD/CAD is also boosted by lower crude oil prices and risk aversion.
The USD/CAD gained momentum on the back of a rally of the US dollar across the board ahead of the FOMC minutes and climbed to 1.2518, reaching the highest level since April.
Market participants await the FOMC minutes. The document will be watched closely for hints about the future of asset purchases and also regarding forward guidance. The US dollar has been rising sharply prior to the minutes, while at the same time, US yields tumbled.
The US 10-year yield dropped to 1.29%, the lowest since February but did not weigh on the greenback. The DXY rose to 92.85, the highest in two months, and is up by 0.15%.
In Wall Street, equity prices managed to erase losses and are now on positive ground. Still, the tone looks dominated by precaution. Crude oil prices are falling sharply for the second day in a row, explaining why the loonie is the worst performer among the G10 space. The WTI recently bottomed at $71.05, the weakest level since June 18.
