- USD/CAD slides from daily high of 1.3384 after a weak performance the previous session.
- Quebec City and Montreal will see lock down restrictions tighten from October 01.
- WTI declines on demand fears.
- US Presidential Election debate, Fedspeak and covid news could provide fresh direction
USD/CAD slips to1.3375 heading towards the European open on Tuesday. The pair performed a U-turn after hitting an intraday high, as the US dollar eased back in early-Asian trading. Still, softer oil prices, Canada’s largest export, and a resurgence of covid in Quebec is keeping USD/CAD bulls optimistic.
A jump of 750+ new daily covid cases, pushed Authorities in Quebec to announce tighter restrictions to stem the spread of the virus in Quebec City and Montreal. Bars, casinos, restaurants, Museums and Libraries will be shut under the new restrictions, whilst guests at home will also be banned
WTI reported -0.55% loss, around $40.45, amid China’s inability to meet the Sino-American trade deal targets and the World Bank’s downbeat economic projections, which could lead to a reduction in the global demand.
US Dollar index (DXY) held steady after selling off in the previous session amid rising optimism of further stimulus from American and the European Central Bank (ECB).
US stock futures are trading mildly higher and Asian markets are also on the front foot US 10-year Treasury yields remain lackluster around 0.66%
There is no Canadian macro data due to be released today .A slew of Fed speakers and the US Trump vs Biden debate could drive direction in the near term.
