- USD/CAD continues yesterday’s fall today.
- US dollar weakened against major competitors.
- WTI oil price holds ground.
USD/CAD was trading near the intraday low near 1.3250 ahead of the European opening, helped by the dollar weakness across the board.
USD/CAD was dragged by the strength in CAD on account of mild gains in the oil prices.
Indications from the US Vice Presidential debate suggest that Democrats and Republicans are ready to offer more stimulus. Also, the turnaround in Trump’s stance regarding stimulus talks with democrats lifted bullish sentiments. After rejecting the democrat’s proposal the previous day, he showed readiness to consider their counteroffer.
Policymakers from New Zealand and Japan also recently sounded more inclined to provide further stimulus.
Another factor helping the bulls is the hope of a coronavirus vaccine.
S&P 500 Futures and equities rose during the Asian session while the dollar index was trading in the red. The DXY was trading near the intraday low of 93.54, a fall of 0.07 Percent, reflecting dollar weakness against a basket of currencies.
WTI oil prices shrugged-off a higher-than-expected reading, 0.501M, in inventory levels against a forecast of 0.294M; the US Energy Information Administration released the figures. Also, Saudi Arabia’s decision to increase the oil prices for Asia and hurricane fears in the US assisted the oil price strength.
The day ahead will witness CAD traders turning their attention to Bank of Canada Governor Tiff Macklem’s speech in the Global Risk Institute’s online summit. The market participants will closely monitor his comments on the monetary policy road ahead for Canada as recent comments suggest readiness for short-term easing. Macklem has also referred to the exchange rates in recent statements.
Apart from this, the weekly US jobless claims are expected at 820k – to be released today. The claim numbers, along with other factors like the pandemic cases, commodity prices, and stimulus news, will steer the direction in the USD/CAD today.