- USD/CAD extends losses for second session as USD weakens
- Losses could be capped by weaker oil prices, at least for now.
- US Consumer Confidence in focus before the first US presidential debate.
The USD/CAD slipped 30-35 pips from daily high and declined to the lower end of the daily traded range, close to 1.3355.
Failing to capitalise on an early move higher, USD/CAD experienced a pullback from 1.3400 moving lower for a second straight session. The move southwards stemmed from US Dollar weakness.
Weakness in US Treasury bond yields dragged on the US Dollar. Concerns over rising coronavirus infections and US political uncertainty boost USD safe-haven inflows.
Anxieties that raising covid numbers could lead to stricter lockdown conditions threatening the rapid recovery of fuel demand and dragging on the price of oil. This could undermine demand for the commodity-linked currency – the loonie – limiting the downside for the USD/CAD pair.
Technically, USD/CAD trades comfortably in a four-day-old trading range, meaning that waiting for follow through action could be useful.before setting up for a meaningful slide, as caution seeps in ahead of the Biden Trump debate later today..
Prior to the debate is the US Consumer Confidence Index and FOMC member speeches which could drive movement in the USD.
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