- USD / CAD bounces to 1.3175 after approaching 1.3100.
- The dollar remains weak in the middle of the vote in the US.
- Stocks close positive on Wall Street, pushing the dollar down.
The The dollar cut losses during the second half of the American session but after the Wall Street close it fell under pressure, approaching the lows of the day. The USD / CAD came to trade at 1.3103, the lowest level in two weeks before bouncing to 1.3175. It is trading at 1.3140 / 45, again pointing lower.
The 1.3100 zone is key for USD / CAD. A close below would enable an extension of the decline, targeting 1.3035. To the upside, a rally above 1.3235 would prepare the dollar for a stronger rebound.
Risk appetite hurts the USD
The dollar remains weakened in a climate of certain optimism in the market, possibly with the expectation that problems will not be generated with the elections in the US In addition, it could be some speculation with a Democratic majority in the Senate that would give a free pass for the introduction of more fiscal stimuli.
In Wall Street, the Dow Jones closed higher than 2% and the Nasdaq climbed 1.85%. In Europe, the main markets ended with gains greater than 2%.
In the context of appetite for risk, the rise of the CAD against the dollar was behind that of currencies such as the AUD and the NZD. Not even the rise in oil, with the WTI rising more than 3%, gave the loonie enough strength.
Credits: Forex Street
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