USD/CAD has exhausted its downward momentum?

The September 1 drop to 1.2994, the first time the USD/CAD had been below 1.3000 since January 8 is beginning to look like the post-pandemic bottom. The brief foray, the lack of subsequent attempts and the firm support at 1.3040 argue that the USD/CAD has exhausted its downward momentum.

Global market sentiment improved during the week, adding to the lmarkets upbeat mood, as US President Donald Trump said that he wants the biggest stimulus plan than House Speaker Nancy Pelosi’s proposal. President Trump was earlier criticized for his lack of acceptance of a big budget on the coronavirus (COVID-19) stimulus.