- Russia’s attack on Ukraine boosts the dollar and oil.
- USD/CAD rises over a hundred pips on the day, breaks February range.
- 1.2800 zone becomes the first relevant support.
USD/CAD is rising significantly on Thursday in the face of a global slump in world stocks and despite oil prices rising more than 6%. The pair climbed to the 1.2850 zone, reaching the highest level in two months.
Firmlythe USD/CAD broke the range that had been in place since the end of January and that had a strong barrier below 1.2800. After breaking above that level the pair has been rising steadily. It peaked at 1.2847, the highest intraday level since December 27.
The upward movement is being driven by the rise of the dollar throughout the market. Russia’s attack on Ukraine generated sharp falls in the stock markets and a great demand for safe-haven assets. Raw materials skyrocketed. Benchmark oil prices rise more than 5%. WTI futures hit $100, before pulling back.
The loonie initially appreciated against the NZD and AUD, possibly due to the rally in oil and being less affected by the conflict. But in the European session, the trend was reversed with AUD/CAD moving to neutral ground and NZD/CAD paring losses.
The economic calendar shows several US economic reports ahead on Thursday, though one would expect them to take a backseat. Several Federal Reserve officials will speak in public, which may be interesting considering the new global context.
Technical levels
Source: Fx Street
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