Canadian dollar rises as markets focus on US stimulus
The Canadian dollar rose on Tuesday, as investors focused on the latest developments about the second Covid-19 stimulus package in the US.
US Treasury Secretary Steven Mnuchin will meet later today with several Congress members both Republicans and Democrats to pave the way for an agreement on the second fiscal aid package.
The Trump Administration said last week that has proposed more than $1.8 trillion within the second Covid-19 package to pass it in Congress to support the US economy.
This came as most of countries, led by the US, European countries, Canada and others, are facing a fierce war with the coronavirus crisis and its global economic impact.
As of 18:08 GMT, CAD/USD rose 0.6% to 0.7627, after hitting an intraday high of 0.7628, and a low of 0.7573.
The US dollar held steadily on Monday, amid lingering optimism about the second Covid-19 aid package aimed at supporting the world's largest economy. US President Trump decided last week to stop the second Covid-19 stimulus talks between Republicans and Democrats in Congress until after the presidential election in November. However, Trump stated that his administration is considering extending the aid package to support to airlines and the paycheck protection program. On Friday, Trump also proposed to the House Speaker Nancy Pelosi a $1.8 trillion fiscal stimulus package. The dollar index rose against a basket of currencies by less than 0.1% to 93.08 as of 20:03 GMT, after hitting a high of 93.2 and a low of 93.01.
At 12:15 GMT, the US economy released its reading for the ADP Non-Farm employment change for September, which increased by 0.749 million jobs, better than forecasts of 0.650 million jobs, and better than August's reading of 0.481 million after it was revised from 0.428 million.
The US dollar fell against most major rivals on Monday, as the market focused on the latest developments about the US second fiscal stimulus package to ease the coronavirus impact. Federal Reserve Chairman Jerome Powell stated today that the Fed is open to collaborating with the private sector on the digital dollar, but the bank is not committed to launching it. Powell warned that the central bank will face difficult monetary policy implications due to launching a digital dollar, and noted the importance of the US dollar in the global economy. The Trump administration proposed a $1.8 trillion fiscal stimulus package in order to pave the way for an agreement with the US congressional leaders to mitigate the coronavirus impact, ahead of the November election. The dollar index fell against a basket of currencies by 0.3% to 93.2 as of 19:38 GMT, after hitting a high of 93.7 and a low of 93.2.