• USD/CAD extends its losing streak for the fourth trading session on Wednesday.
• Investors await the FOMC minutes for fresh interest rate cues.
• The Canadian Dollar outperforms despite multiple headwinds.

The USD/CAD pair tests territory below the round-level support of 1.3600 in Wednesday’s North American session. The Loonie asset weakens as the Canadian Dollar (CAD) outperforms the US Dollar (USD) despite multiple headwinds.

Investors underpin the Canadian Dollar even though the Oil price has fallen on the backfoot amid growing speculation of a ceasefire between Iran and Israel and easing price pressures have prompted expectations of more interest rate cuts by the Bank of Canada (BoC).

Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near 101.30, the lowest level seen in more than seven months. Going forward, the US Dollar will be influenced by the Federal Open Market Committee (FOMC) minutes, which will be published at 18:00 GMT.

Later this week, Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium will be keenly watched by investors to get fresh cues about the interest rate path. Fed Powell will less likely provide a pre-defined rate cut path but might show comfort to market expectations, pointing to a move towards policy-normalization in September.