USD/CAD jumps to highest in two months near 1.2500
- USD/CAD gains almost two hundred pips from European session lows.
- Loonie among worst G10 performers, hit by reversal in crude oil prices.
The USD/CAD rose further and reached at 1.2494 the highest intraday level since April 23. The combination of a stronger US dollar and the decline in crude oil prices boosted the pair.
Sharp rebound from the 20-day SMA
On European hours, USD/CAD bottomed at 1.2301, the lowest in a week and also the 20-day simple moving average. It rebounded as the US dollar started to gain momentum and then received a boost from the decline in crude oil prices.
The WTI barrel hit the strongest level since 2014 earlier on Tuesday near $77.00 and then rose sharply. It is testing the $73.00 zone, down more than 4%. The slide weighed on the loonie.
At the same time, the demand for the US dollar soared amid risk appetite, and even as US yields tumbled to monthly lows. The DXY is up 0.43%, above 93.60. Data form the US came in below expectations and it was mostly ignored by market participans. On Wednesday, FOMC minutes are due.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
