CAD - Canadian Dollar
The Canadian dollar held its ground against the greenback yesterday as the U.S. Federal Reserve added additional stimulus to wart off the economic impact of Covid-19. The Loonie mustard strength against its currency peers as oil prices saw an uptick. Gold on spot pricing was also higher by 1.7 percent to 1522.49 an ounce yesterday and currently changes up another 1.9% to 1598.00 an ounce. The Canadian dollar is trading 0.36% higher from yesterday's close at 1.4430 to the greenback. The loonie, which last Thursday hit a four-year low at 1.4669, has traded in a range of 1.4335 to 1.4560 over the previous 36 hours.
Resistance is seen at 1.4560 yesterday's high, a break of this level to the upside would signal a rise towards 1.4669. On the downside, support is seen at the current market value of 1.4430; a break below could take the pair towards 1.4335 again to yesterdays low.
The US dollar fell through trade on Monday after the Fed announced unprecedented monetary policy stimulus measures designed to sure up the domestic economy and cushion the impact of the looming recession. The Federal Reserve announced new programs wherein it will lend against student loans, credit cards and small businesses while supporting larger employers in maintaining as much of the domestic workforce as possible. The Fed will also expand its purchase of mortgage-backed securities to help normalize market function, doing everything it can to help guide the economy through this unmatched period of uncertainty.
While broader markets remain reluctant to buy back into risk assets, we expect haven plays will remain popular through the short and medium-term. That said, we would expect the record levels of central bank and government stimulus to bite at some point. As Congress passes a 2 trillion dollar stimulus package, we anticipate confidence among investors will improve, perhaps weighing on the USD and fostering a correction of the recent overshoot.
1.4375 - 1.4532 ▼EUR/CAD:
1.5547 - 1.5793 ▲GBP/USD:
1.6732 - 1.7101 ▲AUD/CAD:
0.8496 - 0.8603 ▲NZD/CAD:
0.8305 - 0.8417 ▲