- USD / CAD experiences a decisive rally after falling to multi-year lows.
- WTI is losing more than 1.5% on Monday.
- The US dollar index rises towards 90.00 in the American session.
The pair USD / CAD It fell to its lowest level since April 2018 at 1.2663 on Monday, but reversed its course in the second half of the day. At time of writing, the pair was up 0.3% on the day at 1.2767.
Safe-haven flows help the USD gain strength
Earlier in the day, the widespread selling pressure surrounding the USD and rising crude prices forced the USD / CAD down. However, a negative shift in market sentiment during US business hours provided a boost to the safe-haven dollar and weighed on oil.
Impending nationwide shutdowns in Europe amid growing numbers of coronavirus cases appear to be prompting investors to seek refuge. Reflecting the market’s bad mood, the major US stock indices are down by around 2% and the US dollar index, which fell to a multi-year low of 89.42, is now unchanged on the day in 89.90.
Meanwhile, a barrel of West Texas Intermediate (WTI) advanced to its highest level since February at $ 49.80 after reports suggesting that OPEC + was unwilling to increase production in February. However, the resurgence of concerns about an unstable recovery in energy demand dragged WTI to $ 47.50, where it was down 1.6%.
Canada’s Markit Manufacturing PMI showed on Monday that economic activity in the country’s manufacturing sector expanded at its strongest pace in more than 10 years, but the CAD was unable to capitalize on this optimistic data.
Technical levels
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