• USD/CAD hit by selling wave near day high.
  • Biden chances are fancied by the market.
  • Loonie under pressure from oil weakness.

USD/CAD trades around 1.3125 after retreating 50pips from the day’s highs. Selling in the pair emerged near 1.3175-80, after receiving bids at lower levels earlier in the day, as the US dollar’s haven-appeal attracted fewer takers with the Democrat candidate Joe Biden taking the lead over Trump in the US elections.

But, it is early to call the elections as the final result depends on the numbers from a few remaining swing states; moreover, Trump has declared his intention to pursue the legal course and has asked for a recount in key battleground states. The uncertainty will further delay the much needed economic stimulus for the pandemic-hit nation, the chances now pushing the US Treasury yields down and is affecting the greenback appeal.

Oil-price declines pressurized the Canadian dollar as the lockdown worries affected the demand. The black-gold traded down 1.5 Percent pulling the Loonie along with it.

Traders also kept off from placing any aggressive bets ahead of the FOMC decision due later today in the US session. The USD/CAD will eye the monthly jobs reports from the US and Canada on Friday along with the Fed decision to determine the direction ahead.

At the time of writing, one US dollar buys 1.3127 Canadian dollars, slightly up 0.01% as of 10:35 AM UTC.