USD/CAD hits 6-month low as hopes of US stimulus deal fade


  • USD/CAD drops to levels last seen in February. 
  • The US fiscal impasse keeps the dollar under pressure. 

USD/CAD fell to six-month lows on Thursday as fading hopes for additional US fiscal stimulus kept the greenback under pressure. 

The pair clocked a low of 1.3227 during the Asian trading hours. That level was last seen on Feb. 21. 

Focus on US fiscal impasse

Republicans and Democrats remain deadlocked over additional stimulus for the US economy on Wednesday. President Trump accused Congressional Democrats of not wanting to negotiate the aid package as both sides traded blames for the five-day delay in talks over relief regulation, as noted by Reuters. 

The coronavirus outbreak has taken a heavy toll on the US economy and without additional stimulus, the economic recovery may stall. As such, investors offered dollars on Wednesday, and during Thursday's Asian session. 

And yet that wasn't the only reason for the decline in USD/CAD. The uptick in gold likely added to bearish pressures around the US dollar. The yellow metal rose above $1,935, extending Wednesday's bounce from $1,963 to $1,900. 

In addition, the overnight rally in oil may have drawn bids for the Canadian dollar. WTI rose over 2% on Wednesday after the US government data showed a fall in inventories. 

Technical levels

USD/CAD

Overview
Today last price 1.3242
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.3246
 
Trends
Daily SMA20 1.3393
Daily SMA50 1.3493
Daily SMA100 1.374
Daily SMA200 1.3532
 
Levels
Previous Daily High 1.3347
Previous Daily Low 1.3229
Previous Weekly High 1.3451
Previous Weekly Low 1.3234
Previous Monthly High 1.3646
Previous Monthly Low 1.3331
Daily Fibonacci 38.2% 1.3274
Daily Fibonacci 61.8% 1.3302
Daily Pivot Point S1 1.3201
Daily Pivot Point S2 1.3156
Daily Pivot Point S3 1.3083
Daily Pivot Point R1 1.3319
Daily Pivot Point R2 1.3392
Daily Pivot Point R3 1.3437

 

 

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