- USD/CAD reverses from 1.3602, snaps two-day winning streak.
- US dollar losses its charm amid virus woes, rising equities.
- WTI attempts recovery on the greenback weakness but fails to defy increasing odds of the supply hike.
USD/CAD takes offers around 1.3560/55, down 0.24% on a day, while heading into the European session on Monday. The loonie pair earlier benefited from WTI weakness but failed to cross 1.3600 as the US dollar extends Friday’s losses amid the mildly upbeat session.
The US dollar index (DXY), a gauge of the greenback versus the major currencies, drops over 0.25% to 96.40 by the press time. While increasing odds of the further stimulus propels global markets and diverts funds off the US currency, a sustained surge in the American numbers of the coronavirus (COVID-19) makes it a little appreciable for the world’s largest economy.
With over 66,500 cases, the US continues to lead the global pandemic numbers followed by Brazil and India. The World Health Organization (WHO) cites the macro surge of over 13.00 million in whereas Reuters highlight figures from Florida and Texas to portray the pandemic outbreak in the US. Even so, Trump administration is pushing hard for the schools to re-open while also praising anti-mask rally.
However, markets cheer upbeat signals of further aid packages from the US and the UK, not to forget the Asian quest to combat the virus, to portray the risk-on mood. In doing so, the US 10-year treasury yields seesaw near 0.63% and S&P 500 Futures gain over 0.50% whereas stocks in Asia-Pacific also mark notable gains as we write.
Not everything is positive for the Canadian dollar (CAD) as the nation’s recent rejection to join the US and Mexico in trade talks gains support from the oil price weakness to challenge the currency bulls. WTI trims the early-day losses but stays over 0.75% in red while taking rounds to $40.45 amid increasing calls of further supplies from Saudi Arabia and Iran.
Moving on, a lack of major data/events will keep the traders pushed towards the virus headlines, also news surrounding China, for fresh impetus. However, the quote’s additional weakness depends upon how well the markets manage to extend the latest gains against all odds.
Technical analysis
200-day SMA, currently around 1.3500, becomes the tough nut to crack for the pair sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter gross domestic product (GDP) data on Thursday.