- USD/CAD gave back some of the gains made yesterday.
- Greenback offered despite persisting negatives and light Oil bounce.
- BoC monetary policy ahead on Wednesday waited for further clues.
USD/CAD continued its fall throughout the day and touched 1.3170 on Tuesday early trading. The pair had witnessed a 100 pips up-move yesterday but couldn’t sustain the momentum despite the presence of negative factors which usually helps the USD.
The list of negatives includes the increasing COVID-19 cases, slow progress in the US Fiscal stimulus discussions, and the uncertain US political environment ahead of the November elections.
The weakness in the pair got a further push down by the increase in the WTI crude oil prices by a Percent – a positive for the Canadian dollar.
Nevertheless, traders might not ignore the negatives for long, and the haven-linked USD might come back in vogue any time. The upcoming Canadian monetary policy announcement slated for tomorrow will not allow the investors to put aggressive bets today.
The Durable Goods Orders due today might help in giving new directions in the pair along with broad market sentiments.
At the time of writing, one US dollar buys 1.3190 Canadian dollars, down -0.16% as of 9:50 AM UTC.