- The USD / CAD erased much of the daily gains during the European session.
- Canada’s trade deficit expanded more than expected in September.
- The US Dollar Index remains in positive territory above 93.50.
The pair USD / CAD It rose to a daily high of 1.3300 during the Asian session, but reversed course in the second half of the day. After retreating towards 1.3130, the pair began to rise early in the US session and was last seen gaining 0.35% on the day at 1.3175.
Investors ignore data, waiting for US election result
Data released by Statistics Canada on Wednesday showed that the trade deficit expanded to C $ 3.25 billion in September and disappointing the market’s expectation of a deficit of C $ 2.6 billion.
On the other hand, US data revealed that private sector employment in October increased by 365,000 and disappointing analysts’ estimate of 650,000 by a wide margin.
However, as investors remained focused on the results of the US elections, this data did not elicit a significant market reaction. According to the Associated Press, former Vice President Joe Biden recently took the lead in Michigan, one of the states that could play a big role in the bottom line.
Meanwhile, the US dollar index remains in positive territory near 93.60 despite market optimism. For now, S&P 500 futures are up 1.25% on the day and a decisive rally in major Wall Street indices could make it difficult for the dollar to remain strong.
Credits: Forex Street
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