Loonie hit the lowest levels against the US Dollar since the beginning of August [Video]

The first three sessions of the week haven’t been appetizing as the US political uncertainties, the ongoing geopolitical jitters in the Middle East, and the mounting expectation that Federal Reserve (Fed) would slow down the pace of monetary easing pushed investors to the sidelines.

Gold ran from record to record despite the rising US yields, and the broad-based USD appreciation. The EURUSD sold off to 1.0761 as the rate cut bets in the Eurozone remain strong on the back of inflation that seems under control and weak economic and corporate data. The USDJPY cleared the 150 resistance, pulled out the 200-DMA and is trading past the 152 as Cable slipped below the 100-DMA and remains under a selling pressure as the Bank of England (BoE) Governor Bailey says that inflation in Britain is weakening faster than they anticipated. And the Loonie hit the lowest levels against the US dollar since the beginning of August after the Bank of Canada (BoC) delivered a 50bp cut yesterday, as expected.

There will certainly be a correction and a consolidation to the US dollar rally, but unlikely before the US election.

In equities, the European stocks remain under the pressure of weak earnings which is not true on the other side of the Atlantic Ocean, where Tesla joined the crowd of US companies that announced better-than-expected quarterly results!