Forex

After a rocky September, both CAD/JPY and USD/CAD rates are on the cusp of breaking in favor of more Canadian Dollar strength alongside crude oil prices and equity markets.

The Dow Jones remained composed despite President Donald Trump's Covid infection, pressuring the US Dollar. Now crude oil and gold prices are eyeing a $2.2 trillion fiscal package, will it…

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bullish contrarian trading bias.

The US Dollar Index (DXY) is trying to hold here on this pullback at a confluence of support lines.

US Dollar short squeeze, GBP flips to net short, while AUD/USD longs are halved.

The EU and UK agreed to intensify trade discussions this weekend with both sides needing to move towards the middle ground to get even a basic deal agreed.

EUR/USD rates are at risk of extending their slide lower if a second wave of Covid-19 infections and subdued inflation forces the hand of the ECB.

The price of gold may struggle to retain the rebound from the September low ($1849) as the RSI continues to track the downward trend from August.

The British Pound may come under intense selling pressure as the EU and UK remain divided over Brexit while President Donald Trump fights off the coronavirus.