The USD/CAD pair is trading around 1.3900 during the Asian hours on Monday, marking a continuation of gains from the previous two days. The commodity-linked Canadian Dollar (CAD) is receiving support from rising oil prices, driven by a delay in planned output increases from the OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries and its allies, such as Russia.
West Texas Intermediate (WTI) crude oil prices surged approximately 2% on Monday, reaching around $70.50 per barrel. This increase follows OPEC+’s decision to extend its production cut of 2.2 million barrels per day (bpd) through the end of December 2024, citing weak demand and rising supply outside the group. The member countries also reaffirmed their commitment to “achieve full conformity” with production targets and to compensate for any overproduction by September 2025.
Market participants are keenly observing the upcoming US presidential election on Tuesday. The final New York Times/Siena College poll indicates that Vice President Kamala Harris holds slight leads in Nevada, North Carolina, and Wisconsin, while former President Donald Trump maintains a narrow advantage in Arizona. Additionally, the poll reveals tight races in Michigan, Georgia, and Pennsylvania, with all matchups across seven battleground states falling within a 3.5% margin of error.
In parallel, traders are also focused on the US Federal Reserve’s upcoming policy decision, with expectations of a modest 25 basis point rate cut this week. The CME FedWatch Tool currently indicates a 99.6% probability of this quarter-point reduction occurring in November.
Related Topics:
