Early on Wednesday, the bids for the USD/CAD currency pair went up to about 1.3380. The current comeback of the Loonie pair may have something to do with how the market is feeling and why WTI crude oil stopped rising. Before important data or events, buyers are careful.

Risk appetite goes down as news reports say that a rise in China’s Covid numbers and the RBNZ’s hawkish move show that central banks around the world are still strong. A lot of people are worried about the November PMIs, the FOMC Meeting Minutes, and the October US Durable Goods Orders.

S&P 500 Futures are down a little bit, and 10-year Treasury rates are having trouble staying close to 3.75%.

WTI crude oil prices change by about $81, a day after hitting their lowest point in 10 months. The price of black gold went up because of worries about a supply bottleneck, rumours of a price ceiling, and Saudi Arabia’s refusal to accept signals from OPEC+ to increase output.

On Tuesday, people were happier and the price of oil went up, which made the USD/CAD go down. Canada’s Retail Sales in September were abysmal, sliding 0.5%. The pair ignored stronger data from the US and hawkish comments from the Fed. In November, the Richmond Fed Manufacturing Index went from -10 to -9. Kansas City Federal Reserve President Esther George recently said, “We might need a higher interest rate for a while to get people to keep their savings.”

Conclusion

Due to worries about an upcoming event, the USD/CAD pair may have a slow day. The fundamentals of oil and the Fed Minutes will tell traders what to do.