Canadian Dollar Posts Gains as Oil Recovers and Trades Sideways

The Canadian dollar today extended its winning streak against the US dollar as the recovery in crude oil prices saw the US crude oil trading sideways in a tight range. The USD/CAD currency pair fell for the third consecutive session as  crude oil prices recovered strongly from Monday’s crash despite concerns about global demand for  the  commodity.
The  USD/CAD currency pair today fell from a  high of  1.4115 in  the  early European session to  a  low of  1.4024 later in  the  session and  was headed lower at  the  time of  writing.
The  pair initially headed higher as  the  greenback rallied driven by  investor sentiment after it emerged that Gilead Sciences’ drug Remedisvir had failed to  help critically ill coronavirus patients in  a  clinical trial. Investors flocked to  the  safe-have dollar as  their risk appetite evaporated on  concerns about the  impact of  the  COVID-19 pandemic on  the  global economy. The  recovery in  US crude oil prices as  tracked by  the  West Texas Intermediate, which traded as  high as  18.12 earlier today, also boosted the  loonie.
The  high number of  US initial jobless claims data released by  the  Department of  Labor yesterday also weighed on the greenback contributing to its decline. The currency pair’s decline seems to have stopped at the crucial 1.40 level, where it bounced off yesterday; a break below this level could signal further declines.
The  currency pair’s short-term performance is likely to  be affected by  crude oil prices and  the  US durable goods orders set to  be released at  12:30 GMT.
The  USD/CAD currency pair was trading at  1.4055 as  at  11:48 GMT, having fallen from a  high of  1.4115. The  CAD/JPY currency pair was trading at  76.55, having risen from a  low of  76.27.

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