USD/CAD hesitates below 1.3800 ahead of US employment, industrial data

• The US Dollar loses momentum, but maintains its positive trend against a softer Loonie.
• A nearly $2 decline in Crude prices is adding negative pressure on the CAD.
• Investors are wary of placing large US Dollar bets ahead of the US JOLTS and Factory Orders releases.

The US Dollar appreciates for the third consecutive day on Wednesday, buoyed by higher US yields, while the decline in Oil prices keeps weighing on the commodity-sensitive Loonie. The pair, however, is struggling to breach the 1.3800 level, ahead of the US JOLTS Job Openings and Factory Orders data.

A somewhat brighter market mood is weighing on the US Dollar. The US Dollar Index, which measures the value of the USD against a basket of currencies, has turned lower on the day, although it keeps most of the gains taken on Tuesday.

Lower Oil prices are supporting the pair, as the US benchmark WTI reversed from Monday's highs at $65.77 to levels right above  $64.00 at the time of writing, on news reporting that OPEC+ countries might be considering another output hike in October. Oil is Canada's main export, and a significant decline in prices tends to have a negative pressure on the CAD.

In the US, later today, the focus will be on the US JOLTS Job Openings and Factory Orders data, which are expected to show further signs of economic slowdown and endorse the view of a Fed rate cut in September. If these expectations are confirmed, the US Dollar might extend its reversal.