- USD/CAD rallies over 200 pips from daily lows amid a strong pickup in the USD demand.
- Coronavirus concerns continue to boost the USD’s status as the global reserve currency.
- A strong rally in oil prices did little to underpin the loonie or hinder the strong move up.
A sudden pickup in the USD demand lifted the USD/CAD pair to fresh daily tops, around the 1.4300 mark region during the early North-American session.
Following a modest intraday pullback, the US dollar attracted some dip-buying and was seen as one of the key factors that assisted the pair in recovering over 200 pips from an intraday low level of 1.4079.
The greenback buying interest picked up some additional pace in the last hour and seemed unaffected by a surge in the US Initial Jobless Claims, which rose to 6.648 million in the week ending March 28.
Bulls even shrugged off a weaker tone surrounding the US Treasury bond yields, rather boosted the USD's status as the global reserve currency amid mounting fears over an imminent global recession.
The market worries were evident from a sudden turnaround in the global risk sentiment, which provided an additional boost to the buck's perceived safe-haven status against its Canadian counterpart.
Meanwhile, strong gains in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie – also did little to hinder the move up, albeit might keep a lid on any further gains.
It will now be interesting to see if bulls are able to capitalize on the momentum and make it through weekly highs, around mid-1.4300s, above which the pair is likely to aim back towards multi-year tops.
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 consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.