USD/CAD drops to the fresh low since February 2018 amid mixed clues
- USD/CAD takes offers near the lowest levels in 39 months.
- WTI eases, US dollar bounces off but Canada’s faster vaccinations seem to weigh on the quote.
- Virus, vaccine updates back risk-off mood, S&P 500 Futures drop 0.15%.
- China PMI, Canadian monthly GDP and risk catalysts will be the key.
USD/CAD holds lower ground near 1.2278, down 0.05% intraday, during Friday’s Asian session. The loonie pair recently refreshed the multi-month low with a 1.2275 level as the US dollar bulls seem to catch a breather.
Other than the lack of US dollar moves, mild losses by the S&P 500 Futures and WTI join faster inoculation of Canadian citizens to ward off the coronavirus (COVID-19) risk seem to confuse the traders.
Recently, doubts over AstraZeneca’s vaccine contrast Pfizer/BioNtech jab’s ability to combat covid strain from India. Also, the first Indian-origin virus variant case in France and chatters surrounding China confuse USD/CAD traders amid a quiet day in Asia.
Looking forward, USD/CAD traders await China’s official PMI data for April, likely to ease from the previous month, for immediate direction. Following that, Canada’s monthly GDP for February, expected 0.5% versus 0.7% prior, will join the second-tier US data for fresh impulse.
It should, however, be noted that the risk catalysts, mainly relating to the virus, vaccine and stimulus, remain as the key driver for the USD/CAD prices.
Technical analysis
Unless breaking March month’s bottom around 1.2365, USD/CAD fall towards February 2018 low of 1.2248, followed by the year 2017 bottom surrounding 1.2065, can’t be ruled out.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
