USDCAD falls farther into the mid- level of 1.3800 zone as crude prices rise along with the United States dollar weakens.
Key Points & Considerations
USDCAD drops rapidly to reach 1.3800 while the United States Dollar declines despite the Federal Reserve’s consistent stance. – 1.3790 -0.0066(-0.48%)
The DXY falls to around 106.16 while markets believe the US central bank has finished raising rates of interest.
Traders are waiting on job data from the United States and Canada to provide additional direction.
Following a brief reversal to about 1.3850 mark during the European period, the USDCAD duo drops steeply. The pair is under pressure as the American dollar falls further on anticipation the US Fed would stop raising rates for the time being.
S&P500 futures gained significantly during the London period, indicating that trading players’ tolerance for risk has improved. On Wed, US stocks were substantially acquired as the US central bank held interest rates constant in the 5.25 to 5.50% band. Fed Chairman Powell maintained prospects of additional policy tightening up. Citing the USA economy’s resilience as a result of increased spending by consumers and tighter job markets.
Following a gap-down beginning, the DXY continued its decline to approximately 106.16 mark. Pushed lower by stable Fed action and a surprise weaker ISM Manufacturers PMI for Oct. The U.S. ISM recorded a drop in industrial activity to 46.7, compared to forecasts and the previous publication of 49.0. Conversely, the S&P Global poll of private companies showed the manufacturing sector’s PMI exceeded the 50.0 mark in Oct.
In the meantime, traders anticipate the release of the NFP report due on Friday. In the month of October, US companies employed 180K applicants for jobs, as expected.
This on the CAD face, job statistics for the month of October, that are scheduled to be issued on Friday, shall be closely followed. The rate of joblessness is predicted to rise to 5.6 percent, with 22.5K fresh hires entering the workforce.
USDCAD Performance
Volume
115.703K
Previous close
1.38557CAD
Open
1.38557CAD
Day’s range
1.37690 — 1.38557CAD
OTHER ASSESTS AND CURRENT TRADING RATES IN US TRADING SESSION
S&P 500 4,302.04 +64.18(+1.51%)
Dow 30 33,656.59 +382.01(+1.15%)
Nasdaq 13,256.17 +119.70 (+1.49%)
Russell 20001.694.62 +24.92 (+1.49%)
Crude Oil- 81.09 +0.65 (+0.81%)
