The Canadian dollar has tried to recover after the US currency and crude oil market rallied. In Asia, the USD/CAD currency pair stood at 1.3595, down 0.155. The US Dollar Index (DXY), which measures the greenback against a basket of currencies, has dipped from its overnight high of 111.735 as markets price out hopeful speculation on a Federal Reserve pivot.
The 10-year note yield reached 3.78 per cent, while DXY fell -0.22% today.
US statistics helped the dollar but failed to bolster hopes the Fed could be less hawkish. The September ISM services index resisted Fed tightening since March.
At 56.7, the indicator has risen for 28 straight months and is around the 20-year average (57.5). Service sector activity is not yet below trend to firmly lower inflation. Price indicators are easing. Prices were 68.7 vs. 71.5, while supplier deliveries were 53.9. ANZ Bank analysts said employment climbed to 53.0 (+2.8) and net exports rose (+3.2) despite US strength.
West Texas Intermediate (WTI) crude futures rose 1.5%, from $87.52 to $88.41, due to OPEC+’s planned production decrease in Vienna. The cartel wants to boost oil prices, which have fallen 30% since July.
Conclusion
Bears on the USD/CAD currency pair have arrived in town and are aiming to seize control.