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  • USD/CAD remains under modest bearish pressure on Thursday.
  • US Dollar Index slumps below 93.00 ahead of FOMC.
  • WTI stages technical correction following a three-day rally.

Following a spike to 1.3300 on Thursday, the USDCAD pair closed virtually unchanged at 1.3140 and started to edge lower on Thursday. As of writing, the pair was down 0.17% on a daily basis at 1.3115. 

USD struggles to find demand amid upbeat mood

The broad-based USD weakness on Thursday is allowing the bearish pressure on USD/CAD to remain intact. With investors waiting for election results from battleground states, such as Pennsylvania, Nevada and Georgia, risk flows continue to dominate the financial markets. At the moment, the S&P 500 futures are up nearly 2% on the day and the US Dollar Index is losing 0.63% at 92.88.

Meanwhile, the barrel of West Texas Intermediate (WTI), which gained nearly 9% in the first three days of the week, is down 1% on Thursday, helping the pair limit its downside for the time being.

Later in the day, the US Department of Labor will publish its weekly Initial Jobless Claims data. More importantly, the FOMC will announce its Interest Rate Decision and release the Monetary Policy Statement. 

Previewing the FOMC meeting, TD Securities analysts noted that they don’t expect any new policy announcements. “Changes to the wording of the statement are likely to be minimal but potential changes to the QE program and associated guidance will likely be discussed,” analysts added. “FX markets are more likely to be concerned with the aftermath of the US election than the Fed.”

Technical levels to watch for