USD/CAD edges lower toward 1.2660 as WTI clings to gains above $62
- USD/CAD is falling for the fifth straight day on Wednesday.
- WTI is up more than 1% ahead of EIA's Crude Oil Stocks Change data.
- US Dollar Index stays quiet above 90.00 ahead of Powell's testimony.
The USD/CAD pair closed the previous four trading days in the negative territory and continues to edge lower on Wednesday. As of writing, the pair was trading a little above the multi-year lows it set at 1.2557, losing 0.2% on a daily basis at 1.2564.
WTI climbs above $62 ahead of EIA report
Rising crude oil prices provide a boost to the commodity-related loonie on Wednesday. At the moment, the barrel of West Texas Intermediate (WTI) is rising 1.5% at $62.10. Later in the session, the US Energy Information Administration's (EIA) weekly Crude Oil Stocks Change data will be looked upon for fresh impetus. Investors expect to see a decline of 5.3 million barrels in US crude oil inventories and a bigger-than-expected draw could help the WTI preserve its bullish momentum.
On the other hand, the US Dollar Index is staying relatively calm following Tuesday's modest rebound and allowing crude oil prices to continue to impact USD/CAD's movements.
Later in the session, FOMC Chairman Jerome Powell will be testifying before the House Financial Services Committee. On Tuesday, Powell reassured markets that they will continue to support the economy and downplayed concerns over a potentially sharp upsurge in inflation. Wall Street's main indexes staged a decisive rebound on Powell's remarks and a similar market reaction could force the greenback to remain on the back foot.
Technical levels to watch for