EUR/USD: EUR/USD was finishing its trading day around 50 points lower from the daily high as the US dollar grew during US trading session. Euro had been growing since the beginning of the Asian session yesterday before US session opened. Inflationary pressures reported in the Euro Area with the flash CPI estimate for August coming out hotter than expected. ECB’s Philip Lane’s proposal about fixing the QE program to make financial conditions in an upwards and in a downwards direction was a key takeaway for Euro from the Jackson Hole. This currently means that the recent new all-time lows seen in EUR rates could be used as an argument to slow down pandemic purchases program by this month. The message is pretty hawkish and the equivalent of a rate tapering and might be expected to continue to pressure the US dollar in the future.
USD/CAD: The USD/CAD pair showed a bullish dynamic, having grown to a daily high of 1.2650 during the American trading hours but failed to keep its bullish momentum. Earlier in the day, the data published by Statistics Bureau showed that the Canadian economy expanded by 0.7% on a monthly basis in June as expected. GDP growth in the second quarter was at -1.1% and missed the market expectation of 2.5% by a wide margin. In addition to the disappointing data from Canada, the 1% decline in crude oil prices made it harder for the commodity-related loonie to find demand yesterday.
WTI: West Texas Intermediate crude oil was lower on Tuesday having fallen to a low of $68.17 due to damage assessments by Hurricane Ida’s which has 4th Category strength. According to the provided data, 1.71-million barrels of oil production from Gulf platforms, or 94% of the total, still remains paused. The U.S. Department of Energy on Tuesday said that nine refineries capable of processing 2.3-million barrels per day of oil have shut in because of storm damage and power loss. The prospects of such damage to the region’s refining cluster can leave the oil without buyers, and it could help oil sellers to have some benefits at the start of the week, but in long term this definitely would push oil prices higher.