USD/CAD to continue the sluggish summer drop

FXStreet Team FXStreet

USD/CAD stays pressured near 1.3525, down 0.17% on Monday, as the pair could extend its slump slowly through the summer due to fading USD risk-premium as Canadian and US statistics improve, FXStreet’s analyst Joseph Trevisani informs.

Key quotes

“With the caseload largely in the US, it is possible, should shutdowns reoccur, that the greenback will be singled out for impact rather than boosted in a generalized return to risk-aversion.”

“While cases are rising in many US states, fatalities are not and hospitalizations remain with operational limits. The impact of this round of infections seems to be quite different than the initial surge in April and May but it will yet take a few weeks to see if the apparently less dangerous profile is accurate.”

“Unless the virus data changes the USD/CAD will likely continue its slow summer decline.”

“Initial support is at 1.3500 with resistance at 1.3630.”

Author

FXStreet Team

FXStreet

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