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USD/CAD oscillates around 1.2870 ahead of Fed Powell and US economic data, oil advances

  • USD/CAD is juggling in a narrow range of 1.2867-1.2880 as investors await Fed Powell.
  • An unchanged US PCE will also escalate recession fears in the US economy.
  • Oil prices are balancing above $110.00 as focus shifts to supply worries.

The USD/CAD pair is hovering around 1.2870 after a mild correction from the critical hurdle of 1.2880 in the early Tokyo session. Earlier, the asset rebounded firmly after hitting a low of 1.2820 on Tuesday. The major picked bids amid a firmer rebound in the US dollar index (DXY).

The DXY is attempting to overstep the current hurdle of 104.50 backed by higher expectations of extreme hawkish comments from Federal Reserve (Fed) chair Jerome Powell in his speech. The Fed has already elevated its interest rates to 1.50-1.75% along with the balance sheet reduction program, however, their impact has not been reflected yet on the inflation rate. Therefore, a consecutive rate hike by…

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