- USD/CAD gained today after sustained weakness in earlier days.
- A sharp fall in the oil prices pulls down the Loonie.
- The risk-off sentiments boost the haven-linked US dollar.
The USD/CAD managed to reverse yesterday’s fall to its one-week low and was trading near 1.3330. The pair had fallen from the two-month top near 1.3420 area in the previous days of the week. The uptick was helped by the dollar strength and oil price weakness.
The US equity selloff pointed to the growing risk-averse sentiments, putting the dollar back in demand, as the US fiscal stimulus bill discussions went nowhere near conclusion even after the renewed efforts in recent days. The market mood got further soured by the news that Trump tested positive for the coronavirus.
The oil prices fell by three Percent as demand worries made a strong comeback without any apparent support for the economy from the policymakers. The black gold prices are on course to hit the second week of declines, after reports of additional supply from OPEC in September, mainly from Libya and Iran.
The dollar pullback will not gain further momentum as the traders are awaiting the Non-Farm Payroll numbers later in the day. Markets expect 850K new jobs in September in the economy, falling from 1.37 million jobs created in the previous month. The unemployment rate might show a reading of 8.2 Percent, from 8.4 Percent previous.