- USD/CAD trims gains ahead of the London open.
- WTI oil prices under pressure.
- US stimulus, Brexit, and pandemic in play.
USD/CAD trades up by 0.11 Percent near 1.3157 after hitting an intraday high of 1.3177 earlier today. In the trading ahead of the European opening, the pair wobbled after the better mood seen in the Asian session.
Market optimism was high yesterday backed by the US stimulus package hopes. Still, it turned a bit cautious today after a good start as the fears of the US House Majority Leader Mitch McConnell opposing the move for a package before the presidential elections gained attention. The news of Iran and Russia interfering in the US elections also dragged the sentiments.
Another jolt to the risk-on mood is the strengthening of the second wave of coronavirus in the US and Australia after hitting Europe earlier. The pandemic fears and Brexit worries top the concerns affecting the risk mood along with stimulus dillydallying.
The number of pandemic cases in half of the US states has touched new monthly highs; Australia’s Victoria state witnessed five new cases spoiling their 14-day average.
The dollar index bounced-off a seven-week low and climbed 0.07 Percent to touch 92.73. The risk-off mood reflected in the US stock futures and Asia-Pacific shares while WTI crude prices fell to the lowest level since October 14.
The mixed trading sentiments will force the USD/CAD traders to wait for momentum to make a comeback. The US economic data will influence the day ahead, but the stimulus and other global sentiments will have the upper hand in dictating the direction forward.