- USD/CAD erased large portion of daily gains during European session.
- Canada’s trade deficit expanded more than expected in September.
- US Dollar Index stays in the positive territory above 93.50.
The US/DCAD pair rose to a daily high of 1.3300 during the Asian session but reversed its course in the second half of the day. After retreating all the way to 1.3130 area, the pair started to edge higher in the early American trading hours and was last seen gaining 0.35% on the day at 1.3175.
Investors ignore data, wait for US election outcome
The data published by Statistics Canada showed on Wednesday that the trade deficit expanded to C$3.25 billion in September and came in worse than the market expectation for a deficit of C$2.6 billion.
On the other hand, the data from the US revealed that the private sector employment in October rose by 365,000 and missed analysts’ estimate of 650,000 by a wide margin.
Nevertheless, with investors staying focused on the US election results, these data failed to trigger a significant market reaction. According to the Associated Press, former Vice President Joe Biden has recently taken a lead in Michigan, one of the states that could play an important role in the final outcome.
Meanwhile, the US Dollar Index is staying in the positive territory near 93.60 despite the upbeat market mood. At the moment, the S&P 500 futures are up 1.25% on the day and a decisive rally in Wall Street’s main indexes could make it difficult for the greenback to preserve its strength.
Technical levels to watch for
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