The dollar has broken below the low of the trading range of the last eight days, at 1.3035 / 50 on Tuesday, to reach the psychological level of 1.3000, with the Canadian dollar driven by positive market mood and the process of increased oil.
US dollar sinks on risk appetite and higher oil prices
The USD opened the day with a positive tone and advanced towards the 1.3100 area, where the pair was rejected again. The nearly 5% rebound in oil prices has boosted demand for the loonie, which has sent the dollar to its lowest levels in two weeks.
Hopes for a COVID-19 vaccine to be rolled out early next year have eased concerns about the economic impact of coronavirus lockdowns and sent the price of a barrel of WTI higher than $ 45 for the first time since the beginning of March.
Beyond that, investors have welcomed news of Trump’s endorsement of Joe Biden’s transition and the Democrat’s announcement of former Fed Chair Janet Yellen as the next Secretary of the Treasury.
Rising US Treasuries have eased the negative pressure on the USD, although the risk-sensitive loon has prevailed, and major stock indices are showing strong gains.
Technical levels
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