- USD/CAD saw slight gains/minor losses in the US session.
- Rising oil prices supported the loonie and partly offsetting a broad-based USD strength.
- Upbeat US & Canadian data prevented investors from taking large positions.
- The USD/CAD touched the low of the day in US session however, the move lacked conviction rebounding rapidly 25 pips
Failing to build on its early move higher the pair eased back from the top of a one-week-old trading range,1.3420. A combination of factors limited losses.
US Dollar was in favour on Wednesday reacting to a frenzied US presidential debate and following upbeat data. US ADP revealed that companies created 749K new jobs in September.
The final reading of the US GDP was upwardly revised to 31.4% contraction in the April – June period, versus 31.7% estimated. Chicago PMI beat expectations by a big margin and surged to 62.4 for September.
Canadian GDP showed +3% growth in July down from +6.5% the previous month.This plus rising oil prices underpinned the commodity-linked loonie.
Encouraging data from the US and Canada prevented traders from placing large positions. USD/CAD has been range bound over the past one-week or so a cautious approach should be taken to trading it.