USD/CAD slides back to the 1.2700 as US dollar weakens

USD/CAD has slid back from European morning session highs in the 1.2780s to test the 1.2700 level.
CAD has been lagging the likes of NZD, GBP and AUD, likely due to softness in crude oil markets.

Joel Frank Independent Analyst

USD/CAD has slid back from European morning session highs in the 1.2780s to test the 1.2700 level again, as the loonie benefits from weakness in safe-haven currencies (including the US dollar) amid a broad recovery in risk appetite since the start European session. Currently, the pair trades with losses of around 0.3% or 30 pips on the day.

Driving the day

In terms of the reasons as to why sentiment has taken a positive turn for the better and USD has fallen; positive vaccine news is likely helping. Moderna announced last night that it was to start investigating a booster vaccine shot (to come 6-12 months after the second dose) and Pfizer is also to look into a booster dose. Meanwhile, after the release of a decent earnings report, the Johnson & Johnson (J&J) CFO said that they expect to release Covid-19 vaccine trial data next week and that the company is very optimistic that they will be releasing a very robust data set. J&J’s vaccine is being touted as a “game-changer” in the vaccination race as it would only require one shot to acquire full immunity.

This has benefitted the loonie versus its safe haven G10 FX counterparts. However, CAD has been lagging the likes of NZD, GBP and AUD, likely due to the fact that crude oil markets have not picked up in line with risk appetite; the crude oil complex is struggling with the risks posed to near-term demand by increasingly stringent global travel crackdowns as countries take action to prevent the international spread of new variants of Covid-19.

USD/cad

Overview
Today last price	1.2707
Today Daily Change	-0.0036
Today Daily Change %	-0.28
Today daily open	1.2743

Trends
Daily SMA20	1.2716
Daily SMA50	1.2821
Daily SMA100	1.3013
Daily SMA200	1.3295

Levels
Previous Daily High	1.2779
Previous Daily Low	1.2688
Previous Weekly High	1.2799
Previous Weekly Low	1.259
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2744
Daily Fibonacci 61.8%	1.2723
Daily Pivot Point S1	1.2694
Daily Pivot Point S2	1.2645
Daily Pivot Point S3	1.2602
Daily Pivot Point R1	1.2786
Daily Pivot Point R2	1.2828
Daily Pivot Point R3	1.2877

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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