- GDP numbers from the US and Canada awaited.
- USD/CAD sees multiple resistance around 1.3418/20.
USD/CAD was trading near the intraday high around 1.3415 ahead of the European open on Wednesday. China PMI and API inventories fail to prop oil-prices, helping the greenback to strengthen against the Canadian currency. The US dollar is also in demand as the pandemic cases are near a five-month high.
The dollar index turned around from its lowest levels since September 22 to trade around 93.94 today. DXY is up 0.09 Percent intraday as the fears regarding the smoothness of the US election results affected market mood. Many traders take the index, reflecting the dollar value against a basket of currencies, as a fear gauge. It had shed some points earlier as the first presidential debate progressed.
The greenback was also helped by the uncertainty over the US fiscal-stimulus package; the Whitehouse countered Democrats’ two trillion dollars package with a 1.5 trillion offer. The final vote on the bill is slated for tomorrow. The World Trade Organizations’ support to the EU’s 40 billion dollars tariffs on the US goods also supported the US dollar.
Canada’s own problems surrounding the spike in the COVID cases to the highest level since April also pushed the USD/CAD up. Further, the weakness in the crude oil prices is also weighing on the loonie. WTI is down 0.30 Percent near 39.09 dollars, ignoring the recent upbeat PMIs from China and the fall in the inventory according to the data from the American Petroleum Institute.
The GDP figures from the US and Canada will be watched by market participants for fresh direction in the USD/CAD. Canadian GDP in July is expected to show a drop to three Percent from 6.5 Percent previous while the US second-quarter GDP might confirm the forecast of 31.7 Percent contraction.
