CAD Cannot Immune to Bearish Oil Prices| Influencer Forex Analysis•Jasper Lo

Joseph R. Biden pledged in the debate last week to transition away from the oil industry as the sector has caused serious pollution. Bidens campaign tried to downplay it immediately, saying he was merely stating that he would phase out tax subsidies for the oil industry. But Trump kept sniping at Biden's gaffe, arguing that the US is the world's largest oil producer while the sector is arguably the economic lifeline of some U.S. states. Anyway, Biden, the Democratic candidate, clearly prefers weak oil prices so as to combat Russia and even the states of Texas, Pennsylvania, Oklahoma and Ohio which support the Republicans.

Besides Biden's verbal slip-up, Europe's resurgent coronavirus outbreak also weighs on oil prices. The bloc is likely to enforce mass closures ahead of the second outbreak, which may hinder local transportation and sharply drag down oil demands. European stocks widely slumped in the wake of the announcements from Germany and France about national lockdowns on October 28. As beleaguered by the two negatives, oil prices have got into a position where has little chance to rally. With $36.15 and $34.37 two major support lying at the bottom of the WTI uptrend, a breach below the floor ($34.37) may pave the way to challenge the psychological barrier of $30.

At the same time, the falling prices also encumber the oil-linked Canadian dollar. The Bank of Canada decided on an unchanged rate at the meeting on October 28 but sent dovish signals in the post-meeting statement. Although the bank said the rate would be on hold until 2022, traders believe that monetary easing measures such as negative rates still could be taken for economic stimulus if the countrys economy receives further hit from falling oil prices. With that said, the Canadian dollar now sees a gloomy outlook under the impact of falling oil prices.

[About The Author]

Since 1987, Jasper Lo has been engaged in the financial industry

(forex, futures and gold) for more than 32 years and holds forex R.O.,

securities and futures broker licenses. Mr Lo is an expert in trading

forex, precious metals and commodity futures and an basic and technical

analyst.

Over the years, Mr Lo won many individual and team sales champion

awards, as well as outstanding employee awards. He was invited, as a

guest mentor, to the University of Hong Kong, Guangdong Ocean University

and Guangzhou Jinan University. And he was also appointed as the chief

training consultant by Hantang Securities and Dongguan Securities in

China.

Mr Los experience as guest of honor invited by media including Chinese and English newspapers and columnist:

-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch

-Guest of honor invited by Now Finance Channel - Forex Reports

-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities

-Guest of honor invited by ViuTV - Investor Smarter Group

-Columnist of Finance and Forex Market of Ming Pao

-Presenter of Finance and Forex Forecast of Ming Pao

-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance

-Appointed lecturer of Ming Pao Investment Seminar and Paid Course

-Author of the best seller Investment 36 Stratagem

-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net

-Guest of honor of Open Good Morning of ET Net

-Guest of honor of Metro Finance Channel - Market Opening, Instant

Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market

Analysis

-Guest of honor of New Era of Investment of RTHK

-Columnist of Capital Commodities of Capital Weekly

-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond

-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture

-Guest presenter of Weekly Investment in the World of Enrich Culture