S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- USD/CAD moves little as the stronger US Dollar offsets the impact of the improved Oil prices.
- The US Dollar gains ground on the diminishing likelihood of a Fed rate cut in December.
- CME FedWatch Tool suggests pricing in a 69% chance of a cut in December, against 93% a week ago.
USD/CAD remains steady after two days of gains, trading around 1.4010 during the Asian hours on Monday. The pair struggles as the Canadian Dollar (CAD) gains ground on higher Oil prices. It is important to note that Canada is the largest crude exporter to the United States (US).
West Texas Intermediate (WTI) Oil price holds gain around $61.00 per barrel at the time of writing. Crude Oil prices appreciate as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) signaled a pause in output increase. OPEC+ on Sunday said it planned to pause output increases in the first quarter (Q1) of 2026, following another modest hike for next month.
However, the USD/CAD pair may regain its ground and continues its winning streak for the third consecutive session as the US Dollar (USD) receives support from dampening expectations for a December rate cut by the US Federal Reserve (Fed), following the central bank’s decision of lowering its benchmark overnight borrowing rate for the second time this year to a range of 3.75%-4.0%.
Fed Chair Jerome Powell said during the post-meeting press conference that another rate cut in December is far from certain. Powell also cautioned that policymakers may need to take a wait-and-see approach until official data reporting resumes. Fed funds futures traders are now pricing in a 69% chance of a cut in December, down from 93% a week ago, according to the CME FedWatch Tool.
However, traders may adopt caution due to the prolonged government shutdown, which could fuel economic concerns in the United States (US). The US government impasse has now entered its sixth week with no easy endgame in sight amid a deadlock in Congress on the Republican-backed funding bill.
