- USD / CAD bounces from a low below 1.3100 during the Asian session.
- Although Trump leads in Florida, Biden is close to the 270 required majority votes.
- The final results will take two more days, greater uncertainty may favor the USD.
The USD / CAD extends recovery move, from a two-week low at 1.3095 reached during Wednesday’s Asian session, and now stabilizes above the 1.3200 level, simultaneously halting three consecutive days of declines amid the counting of votes in the US elections at the time of writing, the pair is trading around the 1.3219 region, gaining 0.51% on the day.
Although Trump’s victory in Ohio offers a tough fight for Democrats, his rival Joe Biden has 223 votes to the 270 needed for victory, which in turn it keeps global markets hoping for a “blue wave.” Investors celebrate hopes of strong fiscal stimulus if the Democratic Party dominates the US Congress.
The DXY US Dollar Index remains positive after marking a notable rally during the Asian session. Prices for WTI crude oil, Canada’s top export, trim initial earnings and remain below the $ 39.00 level, still up 1.35% on the day.
Although the focus is likely to remain on updates on the US elections, data on the private sector job change from US ADP and trade data from Canada could generate short-term opportunities in the USD / CAD at the beginning of the American session.
Technical analysis
The USD / CAD bears will have to break the two-month support line, now at 1.3100, to regain control.
Credits: Forex Street
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