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USD/CAD extends its losses for the second successive session, trading around 1.4000 during the Asian hours on Wednesday. The pair loses ground as the commodity-linked Canadian Dollar (CAD) receives support from the higher Oil prices.

West Texas Intermediate (WTI) Oil price gains ground for the second successive day, trading around $57.70 per barrel at the time of writing. Crude Oil prices appreciate after an industry report showed falling stockpiles.

American Petroleum Institute (API) data indicated US inventories fell 2.98 million barrels last week, the first decline in four weeks. Additionally, US President Donald Trump reiterated that India plans to reduce its Russian Oil purchases.

The USD/CAD pair also faces challenges as the US Dollar (USD) declines amid concerns over a prolonged federal government shutdown and potential delays in key US economic data releases, including Nonfarm Payrolls (NFP), adding uncertainty for financial markets and the Federal Reserve (Fed).

The US government shutdown has entered its fourth week as the Senate on Monday failed for the 11th time to advance a House-passed measure to fund the government and end the ongoing shutdown. The 50-43 vote fell mostly along party lines. This marks the third-longest funding lapse in modern history.

A Reuters poll suggested that 115 out of 117 economists have predicted that the Fed will reduce interest rates by 25 basis points (bps) to 3.75%-4.00% in the monetary policy announcement on October 29. For the year, 83 of 117 economists expect the US Federal Reserve to cut interest rates twice, while 32 anticipate one cut.

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