- The USD / CAD falls sharply due to the rise in crude prices.
- WTI earns more than 8%, trading above $ 40.
- The US Dollar DXY Index continues to fluctuate below 93.50.
The pair USD / CAD has come under heavy downward pressure during Monday’s European session and has fallen to its lowest level since early January at 1.2936. At time of writing, the pair is down 0.71% on the day trading at 1.2950.
Oil soars on hopes of a coronavirus vaccine
The pharmaceutical giant Pfizer announced Monday that its experimental vaccine for COVID-19 in the last stage of the trial has been shown to prevent 90% of infections without serious safety concerns.. As an initial market reaction, crude prices soared higher, which has helped the Canadian dollar, a currency tied to commodity prices, to gain traction against its rivals. At time of writing, a barrel of West Texas Intermediate WTI is up 8.3% on the day at $ 40.50.
On the other hand, the US dollar DXY index records small daily gains at 92.30. However, risk appetite sentiment in the market appears to be driving US stock market futures, suggesting that the major Wall Street indices post a strong rebound at the start of the week. If risk appetite money flows continue to dominate the markets during the American session, the USD could find it difficult to remain resilient against other currencies. At the moment, S&P 500 futures are up 3.8% on the day.
Credits: Forex Street
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