Canadian Dollar Weakens Against US Peer on Flight to Safety Mood

The  Canadian dollar today lost ground against its southern neighbour amid driven by  the  flight to  safety mood that dominated the  financial markets today. The  USD/CAD currency pair rallied today as  investors were spooked by  the  rising coronavirus cases globally, which pose a  direct threat to  the  ongoing global economic recovery.
The  USD/CAD currency pair today rallied from an  Asian session low of  1.3501 to  a  high of  1.3581 in  the  American market and  was near these highs at  the  time of  writing.
The  currency pair traded sideways at  the  start of  today’s session as  the  Bears took a  break from yesterday’s massive fall at  the  crucial 1.3500 level. The  pair then rallied higher as  investors favoured the  greenback over the  loonie. The  slight drop in  oil prices as  tracked by  the  West Texas Intermediate, which hit a low of 95.98 today also did not help the commodity-linked loonie. Investors were worried that President Donald Trump would impose further sanctions on  top-ranking Chinese officials over the  Hong Kong security law. However, this did not materialise.
The  release of  Canada’s employment data for  June by  the  ADP also did not help the  loonie. The  report showed that Canada added 1,042,900 in  June, but the  May print was revised from +208,400 down to  -2,951,400, weakening the  loonie further. The  upbeat US retail sales data for  June released by  the  Census Bureau also boosted the  pair.
The  currency pair’s future performance is likely to  be affected by  crude oil prices and  US dollar dynamics.
The  USD/CAD currency pair was trading at  1.3577 as  of  19:58 GMT, having risen from a  low of  1.3501. The  CAD/JPY currency pair was trading at  79.07 having fallen from a  high of  79.28
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