Canadian Dollar at Key Psychological Support Level
Wednesday 8 April, 2020
Daily Currency UpdateCAD - Canadian DollarThe Canadian dollar has made some gains on its counterparts as rising crude oil prices from lows tested last week due to the Russian and Saudi Arabian price war. A resolution is expected in the coming day as OPEC countries are revealing what each is willing to cut. The most significant outlier are calls from Russia and Saudi for the United States to join in on the production cuts to help curb the oil glut. The Canadian dollar is seeing immediate support at 1.40, and a break of this psychological level would trigger 1.3930-40. Resistance is seen at 1.4080 last night's high and yesterday's NA closing price.The US Dollar fell through trade on Tuesday, succumbing to improving demand for risk and signs the fight against the coronavirus is finally beginning to shift. Spain, Italy and the UK, three of the hardest-hit European countries all reported declining infection and fatality rates. At the same time, New York governor Andrew Cuomo announced they are nearing the peak of the curve. The dollar index fell 0.8%, moving back below 100 to touch 99.92 when valued against a basket of currencies.
Key MoversThe Euro pushed through 1.09 while the pound moved back through 1.23, testing another break above 1.24 despite uncertainties surrounding Boris Johnson's conditions and the stability of government in his absence. Johnson spent a second night in intensive care after his condition worsened at the weekend, calling in Dominic Raab to deputize as he battles the virus.Attentions remain affixed to signs of improvement in the fight against coronavirus with the USD underpinned by the continued uncertainty. We expect investors to remain wary of extending risk plays in the face of the ongoing coronavirus lockdown with demand for risk mostly subdued through the weeks ahead.
- USD/CAD: 1.3990 - 1.4082 ▲
- EUR/CAD: 1.5203 - 1.5296 ▼
- GBP/CAD: 1.7254 - 1.7422 ▲
- AUD/CAD: 0.8593 - 0.8736 ▲
- NZD/CAD: 0.8338 - 0.8449 ▲