USD/CAD is trading at 1.20692, 0.32% up since Tuesday. The soft USD ahead of FOMC Meeting Minutes with an uncertain outlook over interest rate hike decision remains supportive for other counterparts. The rising Oil prices further cushioned the USD/CAD since both the instruments are directly correlated. Also, uncertain outlook towards interest rate hike amid rising inflation firmed the USD & cushioned the other basket of currencies. The outcome of country’s CPI data will be closely seen today. As seen in the chart, the pair is strongly trading near major support of previous lows showing the chances of strong breakdown if breached. Further buying in CAD can be suggested against the USD with the target of 1.19250 levels on short term basis.

Coffee is trading at $153.36, 0.69% up since previous close. The Coffee is forming highs since last few trading sessions amid growing consumption demand on account of global recovery over pandemic Covid-19. Also, the lockdown in few countries leads to storage of consumer food products which again boosted the agri-commodities. The weaker greenback ahead of Fed Minutes release makes Brazilian Real (BRL) currency & Coffee prices stronger since the Brazilian farmers fetches more profits while exporting the beans to U.S. As seen in the chart, the commodity is trading above the short term Moving Averages indicating further buying bias with the next target of $158-$160 levels.

GER30 is trading at 15242, 0.31% down since previous day close. The selling pressure holds the ground in equity markets ahead of the result of Fed Meeting Minutes which is to be released today; focusing on future monetary outlook. Last week, the Fed officials showed a gradual approach towards interest rate hike & QE tapering talks which boosted market sentiments & indices. The weaker outcome of Euro-zone Flash GDP & Trade Balance data slightly pressurized the index GER30. The market will be closely monitoring the PMI data release later in this week. As seen in the chart, the index reversed down till MA (10) & MA (20) which acts as a major support level & hence, slight selling bias may be noticed for the day.