- The appearance of some new USD selling limited the USD / CAD recovery attempt.
- US political headlines remain the key driver of sentiment surrounding the dollar.
- The USD bulls did not seem impressed and ignored the upbeat monthly US jobs report.
- Weaker oil prices and disappointing details from the Canadian employment report helped limit the decline in the USD / CAD.
The pair USD / CAD it trimmed a significant chunk of its intraday recovery gains and was last seen hovering near the lower end of its daily trading range, around 1.3050, virtually unchanged on the day.
The US dollar was unable to capitalize on the initial recovery attempt, instead witnessing some new selling amid rising odds that Democratic candidate Joe Biden will become the next US president. In the latest update of the US election, the former vice president has taken a small lead in the key state of Pennsylvania.
With US political headlines proving to be a unique driver, the USD bulls did not seem impressed, instead ignoring the better-than-expected monthly US jobs report on Friday. The head of the NFP showed that the US economy added 638,000 new jobs in October compared to the 600,000 expected. Furthermore, the unemployment rate fell to 6.9%.
The emergence of some new USD selling, in turn, was seen as one of the key factors that limited the rise in the USD / CAD pair. However, the decline was muffled due to weaker crude oil prices, which are now down more than 2% on the day, tending to undermine demand for the commodity-linked currency – the Canadian dollar.
The loonie was further pressured by disappointing domestic employment details, which showed the number of people employed increased by 83,600 in October from 100,000 anticipated. Furthermore, the unemployment rate fell less than expected to 8.9% from 9% previously. However, the USD / CAD pair remains very close to the two-month lows set in the previous session at 1.3028 and remains vulnerable to further decline.
Credits: Forex Street
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