- USD/CAD has risen from Asia Pacific session lows around 1.2520 to current levels around 1.2580.
- Concerns regarding rising Covid-19 cases in Canada and tougher lockdowns ahead seem to be weighing on the loonie on Tuesday.
USD/CAD has been on the front foot for most of the session, rising from Asia Pacific session lows around 1.2520 to current levels around 1.2580. That means the pair has crossed back to the north of its 21-day moving average. Short-term USD/CAD bulls may be on the lookout for a test of April highs around the 1.2600 level, ahead of a potential move beyond that to the 50-day moving average which currently resides in the 1.2630s. Just above that is the March high at 1.2647. USD/CAD currently trades with gains of about 60 pips or 0.5% on the session.
Canada Covid-19 concerns
Concerns regarding rising Covid-19 cases in Canada and potential tougher lockdowns ahead seem to be weighing on the loonie on Tuesday. The Premier of Ontario, the most populous province in Canada with the largest economy, said on Tuesday that the state is to toughed Covid-19 restrictions soon and Canadian PM Trudeau commented that the country is facing a very serious third wave.
Canada is currently struggling to contain the spread of the B.1.1.7 variant first identified in the UK, which is up to 70% more transmissible and 30% deadlier than the original strain. Meanwhile, Western provinces are struggling to contain an outbreak of the P.1 variant first detected in Brazil. In total, Canada reported an additional 6.5K infections on Monday and the trajectory of infections suggests things are only likely to get worse in the coming weeks. Experts are warning that unless stringent measures are taken, the infection rate is likely to hit record highs (i.e. more than 10K infections per day).
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.