- USD/CAD remained under some heavy selling for the second straight session on Tuesday.
- Positive oil prices undermined the loonie and exerted some pressure amid weaker USD.
The USD/CAD pair maintained its offered tone through the early European session and is currently placed near one-week tops, around the 1.4030 region.
The pair witnessed some follow-through selling for the second consecutive session on Tuesday and was being weighed down by a combination of factors – a modest US dollar pullback and positive crude oil prices.
The latest optimism over a slowdown in the number of new coronavirus cases in the United States, Italy and Spain supported risk sentiment, which eventually dented the USD's perceived safe-haven demand.
The risk-on mood was further reinforced by some strong follow-through upsurge in the US Treasury bond yields, albeit did little to impress the USD bulls or ease the prevailing bearish sentiment around the pair.
On the other hand, a goodish pickup in crude oil prices underpinned demand for the commodity-linked currency – the loonie – and contributed to the pair's slide to the vicinity of the key 1.40 psychological mark.
Oil prices rallied around 4% on Tuesday in the wake of firming expectations that the world's biggest producers will agree to cut output amid a sharp drop in the global demand and deepening supply glut.
Meanwhile, growing market concerns over the economic fallout from the coronavirus pandemic might continue to benefit the USD's status as the global reserve currency and help limit deeper losses.
As investors look for additional signs of a peak in the coronavirus pandemic, it will be interesting to see if the pair is able to find any support at lower levels or continues with its ongoing bearish trajectory.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.