USD/CAD couldn’t react much to the upbeat employment numbers on Friday as the tech sell-off had taken centre stage and Monday was a trading holiday for the US and Canadian markets.
USD/CAD traders will be weighing the six-day winning streak in the US dollar index and the weakness in WTI crude oil prices which is Canada’s top export item. Ahead of the North-American session open, the pair remains compressed as US-China, and Indo-Sino tensions are back in the news.
The pair was trading around 1.3100 in the pre-European session on Tuesday and has trimmed its earlier gains.
The US-China tensions are back in play as Beijing imposed visa restrictions on American reporters and the rumours are rife regarding a possible ban from Washington on cotton imports from Xinjiang. Added to the US-China tensions, risk sentiments were also affected by the Indo-China border tensions. In Europe, Brexit tensions and the demand for further easing from the European Central Bank are helping the US dollar against its competitors.
The dollar index is currently enjoying a six-day winning streak pulling back from its 28-month low; DXY was near 93.15, up 0.10 Percent today.
Asia-Pacific stocks had a mixed day while the US 10-year Treasury yields dropped to 0.70 Percent; the WTI crude prices fell 0.40 Percent to 39.25 dollars, a positive for the USD/CAD pair as CAD usually weakens on lowering crude oil prices.
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