The Canadian dollar fell to a one-month low against its U.S. counterpart on Monday and the Toronto stock market posted its biggest decline since January as Canadians headed to the polls and worries about China roiled global financial markets. The loonie was trading 0.3% lower at 1.2810 to the greenback, or 78.06 U.S. cents, after touching its weakest intraday level since Aug. 20 at 1.2895. Canadian Prime Minister Justin Trudeau may cling to power after the dust has settled from Monday's election, but he is likely to lose his bid for a parliamentary majority.
USD/CAD tested resistance at 1.2900.
It’s a particularly quiet day ahead on the economic calendar. There are no material stats to shift market sentiment following Friday’s moves across the majors.
The Canadian dollar hit a near one-month low against its U.S. counterpart on Friday as falling energy prices and September 20 election uncertainties weighed on the commodity currency.
USD/CAD settled above 1.2730 and is trying to settle above the next resistance at 1.2760.
The Canadian dollar edged higher against its U.S. counterpart on Friday as the central bank of top commodity consumer China moved to calm markets, while Canada's 10-year yield climbed to a five-week high. Copper prices rose after the People's Bank of China infused liquidity to ease nerves caused by property giant China Evergrande Group's debt woes. Canada is a major exporter of commodities, including copper and oil.
The Canadian dollar weakened against its U.S. counterpart on Friday as commodity prices fell and investors adjusted their positions ahead of a Canadian federal election, with the currency losing ground for a second week. The Canadian dollar was trading 0.5% lower at 1.2746 to the greenback, or 78.46 U.S. cents, after touching its weakest level since Aug. 23 at 1.2762. "It may just be a little bit of position-readying for the election outcome on Monday," said Amo Sahota, director at Klarity FX in San Francisco.
USD/CAD is testing the resistance level at 1.2685.
It’s a busy economic calendar, with ECB President Lagarde also scheduled to speak. Economic data from the U.S will be key later in the day, however.
The dollar continued to slide following the softer than expected U.S. CPI report. The dollar was lower most other major currencies as traders awaited the Fed decision. Tuesday’s consumer price report showed a deceleration in inflation expectations which weighed on the greenback.