The latter rallied, encouraged by the risk-off market sentiment as stimulus hopes vanished. The USD/CAD currency pair climbed higher during the American session. President Donald Trump lost all hopes of a US stimulus compromise before the November 3 elections.
On Tuesday, the USD/CAD currency pair climbed from a low of 1.3242 during the Asian market to a high of 1.3316 through the American session. Nevertheless, they were slightly off these highs at the time of writing.
The currency pair opened off trading sideways
They were primarily underpinned by the desirable crude oil prices, as accompanied by the West Texas Intermediate. Crude oil prices had rallied over the past two days nursing the commodity-linked Canadian dollar.
Investors were also hoping that the return of President Donald Trump to the White House would improve his chances of reelection. His returned caused the markets’ revival. Still, his latest tweets about pausing stimulus package agreements with the Democrats till after the election created the US markets to nosedive.
The announcement of Canada’s international merchandise trade report for August also joined the dollar’s vulnerability. Statistics Canada related to the country exported goods worth less than its imports, increasing its trade deficit to $2.45 billion upon the supposed $2 billion.
Assumptions state that crude oil prices and US dollar dynamics affect the currency pair’s future.
The USD/CAD currency pair was trading at 1.3303 as of 20:21 GMT, improving from a low of 1.3242. The CAD/JPY currency pair was trading at 79.37, having collapsed from a high of 79.79.