- USD / CAD extends the bounce from monthly lows at a slow pace.
- Loonie weakens despite rising oil and stocks.
After the sharp drop on Monday, USD / CAD started a bounce that is continuing on Wednesday. At the start of the week, the pair traded at 1.2926 and recently climbed to 1.3057, reaching the highest level since Friday and is asserting above Monday’s highs. In other words, the loonie has given up all the profits that followed the oil and stock rally after the news about the vaccine.
The WTI barrel tested levels above $ 43.00 hours ago, the maximum in two months and maintains a bullish tone, given positive expectations for demand. The advances in the coronavirus vaccine They have had a major impact on the markets, boosting the equity and oil markets.
The change in mood in stocks initially weakened the dollar and strengthened the loonie. But the Canadian currency lost momentum and not only ran behind the AUD and NZD, but even against the dollar it erased the gains.
With no data ahead, what happens in the exchanges may be key for the USD / CAD. There will be no economic data from the US or Canada. In both countries it is a holiday.
From a technical point of view, the reversal of the USD / CAD with the return above 1.3000, continues to give momentum to the dollar. Above 1.3055 / 60, the next strong resistance is at 1.3095 / 1.3100. A drop below 1.3000 on the other hand would put the pair under heavy pressure again.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
