- USD / CAD consolidates daily losses near 1.3050 in the late US session.
- The US Dollar Index remains below 93.00 ahead of the FOMC policy announcements.
- WTI losses keep CAD gains limited on Thursday.
The pair USD / CAD It fell to its lowest level since early September at 1.3026 on Thursday and appears to have entered a consolidation phase in the last US session. At time of writing, the pair was down 0.7% daily at 1.3050.
USD struggles to achieve significant recovery
Risk appetite in the market made it difficult for the dollar to find demand and caused the US dollar index (DXY) to fall sharply. With former Vice President Joe Biden creeping closer to a victory in the presidential race, the DXY fell to its lowest level in more than two weeks at 92.48.
Before the FOMC policy announcements, the DXY erased a small portion of its daily losses and was last seen shedding 0.77% on the day at 92.75.
In preview for the November FOMC meeting, “If the final results of the congressional elections show a divided Congress, we expect the Fed to increase its bond buying pace, but probably not until after the meeting or at the meeting. December, “analysts at Danske Bank said. “Still, the risk is that the Fed becomes more dovish than in September, when it didn’t do much.”
Meanwhile, after a three-day rally, crude oil reversed direction on Thursday and appears to be limiting gains in the commodity-sensitive Canadian dollar. At the moment, a barrel of West Texas Intermediate is down almost 1% on the day at $ 38.75.
Credits: Forex Street
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