USD/CAD: Primed for a move lower as the loonie anticipates the global recovery


USD/CAD settled at the three year low and support of 1.2620 on Friday. The technical position of the pair is weak and fundamental analysis agrees, Joseph Trevisani, an Analyst at FXStreet, reports.

Key quotes

“Even a healthy resumption of US growth, by no means assured, would have limited positive impact on the USD/CAD. As the largest trading partner of the US and a resource supplier to the world's largest economy, Canada and its currency actively participate in American success.”

“There is weak support at 1.2590, the January low, but nothing of consequence beneath. The combination of technical weakness for the USD/CAD and fundamental strength for the Canadian dollar likely spells further for the US dollar losses against its northern cousin.”

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD holds above 1.4050 after upbeat UK job figures

GBP/USD is trading above 1.4050, near the fresh 35-month highs as US yields retreat from the highs and push the dollar lower. UK wages rose by 4.7% in December and January's jobless claims fell by 20,000, both better than expected. 

GBP/USD News

Bitcoin stages a quick bounce above $50,000 after the 11% sell-off

The wild ride in Bitcoin continues in Tuesday’s Asian trading, as the BTC sellers are back in control, knocking off prices by almost 11%. Although, strong bids emerged just above $48,500 levels, prompting the flagship cryptocurrency to stage a quick recovery back beyond the $50,000 mark.

Read more

EUR/USD sets four-week high, eyes Powell's testimony

EUR/USD advances toward 1.2200 but is struggling to keep the bullish momentum going, with investors turning cautious ahead of the Fed Chairman  Powell's appearance before Congress later Tuesday.

EUR/USD News

XAU/USD retreats from one-week tops, on the defensive below $1810 level

A combination of factors failed to assist gold to capitalize on the early uptick to one-week tops. The underlying bullish tone in the financial markets capped gains for the safe-haven commodity. The recent rally in the US bond yields also held bulls from placing bets around the yellow metal.

Gold news

US Dollar Index struggles for direction around 90.00, looks to Fed, data

DXY consolidates the recent drop and hovers around 90.00. The dollar has decoupled from performance in yields in past hours. Housing data, Fed’s Powell testimony, Consumer Confidence next on tap.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures