The loonie-dollar pair had risen to its highest level in a month the day before, as the US dollar's safe-haven demand was bolstered by a broad risk-off mindset. Concerns about the upcoming federal elections in Canada, as well as low prices for Ontario's principal export, oil, ran parallel.
It should be mentioned that rumors that a senior US Senator, Joe Manchin, has pushed out President Joe Biden's $3.0 trillion stimulus negotiations to2022, combined with uncertainties about the debt limit increase, have added to the risk appetite's downside pressure. Janet Yellen, the US Treasury Secretary, has called for another extension of the limitations. Moving forward, early election results and risk catalysts are likely to remain the focus, but second-tier housing data from the United States may potentially entice USD/CAD traders.
It should be mentioned that rumors that a senior US Senator, Joe Manchin, has pushed out President Joe Biden's $3.0 trillion stimulus negotiations to2022, combined with uncertainties about the debt limit increase, have added to the risk appetite's downside pressure. Janet Yellen, the US Treasury Secretary, has called for another extension of the limitations. Moving forward, early election results and risk catalysts are likely to remain the focus, but second-tier housing data from the United States may potentially entice USD/CAD traders.