USD/CAD rises towards 1.4100 amid fresh risk-off, WTI weakness
|- USD/CAD takes the bids, snaps two-day losing streak.
- WTI drops to the lowest since 1999 amid demand-supply concerns.
- Risk-off renews following fresh coronavirus updates.
- Second-tier data from the US and Canada will join virus news for fresh direction.
With WTI dropping to the lowest since 1999, USD/CAD takes the bids to 1.4075, up 0.55% on a day, during Monday’s Asian session.
While initial risk-off seems to have triggered the Loonie pair’s early-Asian fall, the latest news of mass shootings in Canada and the plunge in oil prices might have called further downside.
Washington Post came out with the news suggesting at least 10 dead, including gunman, while describing Canada’s deadliest attack in years.
On the other hand, odds of the US economic restart seems to dwindle following the Reuters tally suggesting over 40,000 death toll and 744,000 infections in the US keeping it as the global hotspot.
Even so, US President Donald Trump drops the hint for another aid package while also suggesting the talks between Vice President Mike Pence and state governors on Monday.
Risk-tone remains heavy with the US 10-year Treasury Yields down one basis point (bp) to 0.645% with Japan’s NIKKEI down more than 1.0% to 19,690 by the press time.
Traders will keep eyes on the virus updates as well as second-tier data from the US and Canada, namely Chicago Fed National Activity Index and Wholesale Sales.
Technical analysis
Buyers still await a clear break above the 21-day SMA level of 1.4100 for fresh entry.
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