USD/CAD bears battles 1.3000 threshold amid US dollar declines, WTI strength
|- USD/CAD drops for the seventh day, to the lowest since September 01.
- DXY refreshes 10-week low as risks stay bid following US elections.
- WTI benefits from USD weakness, upbeat market sentiment amid a light calendar.
USD/CAD takes offers around the intraday low of 1.3007, down 0.27% on a day, while heading into Monday’s European session. In doing so, the quote benefits from the broad US dollar weakness and upbeat performance of Canada’s main export, WTI crude oil.
Be it S&P 500 Futures or the Asian stocks, needless to mention the US 10-year Treasury yields, risk barometers cheer Joe Biden’s victory in the US presidential elections. The market optimism ignores Donald Trump’s challenges to multiple results as well as fears that the Republicans can still keep the power in the Senate. Also joining the line of the risk-negative news is the recent resurgence of the coronavirus (COVID-19) in the US and Europe.
With the upbeat trading sentiment weighing on the US dollar’s safe-haven demand, the US dollar index (DXY) declines to the fresh low since the September-start, currently down 0.10% intraday to 92.18.
Other than the greenback weakness, WTI’s rise above $38.00 also favors the USD/CAD sellers. By press time, the oil benchmark trims the early-Asian gains, which were once above 2.0%, while declining to $38.30.
Moving on, global market players will keep eyes on the risk catalysts amid a light calendar for fresh impetus. However, the risk-on mood is likely to continue supporting the USD/CAD bears.
Technical analysis
An ascending trend line from December 31, 2019 and September month’s low, respectively around 1.3000 and 1.2995, restrict the pair’s short-term downside. Meanwhile, an upside clearance of the 1.3100 immediate resistance can escalate the corrective recovery towards the mid-October top near 1.3260.
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