- USD/CAD was seen consolidating in a narrow range below the 1.3100 mark on Friday.
- COVID-19 jitters, dovish Fed expectations weighed on the USD and capped the upside.
- A modest pullback in crude oil prices undermined the loonie and extended some support.
The USD/CAD pair struggled for a firm directional bias and seesawed between tepid gains/minor losses, around the 1.3075 region through the early European session.
A combination of diverging factors failed to provide any meaningful impetus to the major and led to a subdued/range-bound price action on the last trading day of the week. Concerns about the economic fallout from new COVID-19 restrictions in several US states kept the US dollar bulls on the defensive. This, in turn, was seen as a key factor capping the upside for the USD/CAD pair.
The greenback was further pressured by speculations for additional monetary policy easing by the Fed. That said, a fresh leg down in the equity markets extended some support to the USD's perceived safe-haven status. The global risk sentiment took a hit on Friday after the US Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses.
Apart from this, a modest pullback in crude oil prices undermined the commodity-linked currency – the loonie – and further collaborated towards limiting any meaningful downside for the USD/CAD pair. The continuous surge in new coronavirus cases across the globe dampened prospects for a swift recovery in fuel demand and exerted some downward pressure on crude oil prices.
Moving ahead, market participants now look forward to the release of Canadian monthly retail sales data for some impetus. This, along with the broader market risk sentiment and developments surrounding the coronavirus saga, will influence the USD price dynamics and assist traders to grab some short-term opportunities.
Technical levels to watch
|Today last price||1.3074|
|Today Daily Change||0.0013|
|Today Daily Change %||0.10|
|Today daily open||1.3061|
|Previous Daily High||1.3123|
|Previous Daily Low||1.3058|
|Previous Weekly High||1.3173|
|Previous Weekly Low||1.2928|
|Previous Monthly High||1.339|
|Previous Monthly Low||1.3081|
|Daily Fibonacci 38.2%||1.3083|
|Daily Fibonacci 61.8%||1.3098|
|Daily Pivot Point S1||1.3038|
|Daily Pivot Point S2||1.3015|
|Daily Pivot Point S3||1.2973|
|Daily Pivot Point R1||1.3103|
|Daily Pivot Point R2||1.3146|
|Daily Pivot Point R3||1.3169|
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.