USD/CAD jumps to 1.3800 neighborhood as oil slump continues


Share:

The Canadian Dollar continues to lose ground against its US counterpart, with the USD/CAD pair hitting fresh 14-month highs and fast approaching the 1.3800 handle.

Currently trading around 1.3785-90 band, the ongoing slump in oil prices amid renewed fears of global supply glut, with WTI crude oil slammed below the $45.00/barrel mark, has been weighing heavily on the commodity-linked currency - Loonie, over the past three weeks.

   •  WTI slumps -3% in Asia, breaches $ 44 mark

With the Federal Reserve leaving doors open for two more interest rate-hike in 2017, diverging monetary policy stance between the Federal Reserve and the Bank of Canada further collaborated to the pair's strong up-surge to the highest level since February 2016.

Investors on Friday will remain focused on the key monthly jobs report (NFP) from the US, which if reinforces market expectations for an eventual Fed rate-hike action at its June meeting should pave way for continuation of the pair's strong bullish momentum.

   •  US: Decent economic releases suggest economy recovering at moderate pace – ANZ

Technical levels to watch

Bulls would be eyeing for a sustained move beyond the 1.3800 handle, above which the pair is likely to accelerate the up-move towards 1.3840-45 horizontal resistance before eventually aiming to reclaim the 1.3900 handle.

On the flip side, any retracement below 1.3755-50 immediate support now seems to find fresh buying interest around the 1.3700 handle, which if broken is likely to trigger a near-term corrective slide towards 1.3630 horizontal support.

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures