USD / CAD reaches new session highs, around 1.3350, after the drop in oil prices.

The pair USD / CAD recovered around 45-50 pips from the Asian session lows, when it was last seen trading near the upper limit of its daily range, just below the mid-range zone. 1.3350.

After the good price movements of the previous day and the early fall to levels below the 1.3300, the pair managed to attract some new purchases on the last day of the week. The rebound was driven exclusively by a further decline in oil prices, which tend to undermine demand for the commodity-linked currency – the Canadian dollar.

The oil He tried to capitalize on his recovery attempt and fell around the 1.5%, getting back closer to multi-month lows amid concerns that the increasing numbers of cases of COVID-19 could affect fuel consumption. Also, the return of the Libyan production and the expectations that the OPEC increase its production in January weighed even more on the product.

Aside from this, a steep decline in US equity markets provided some support for the safe-haven status of the US dollar and further contributed to the tone of supply around the pair. USD / CAD. However, the uncertainty about the actual outcome of the presidential election next week could make dollar bulls stop making aggressive bets.

Anyway, the pair USD / CAD could surpass the highs of the night and regain the mark of the 1.3400 before heading to the supply area of ​​the 1.3415-20. Next, market participants are looking forward to the release of the Canadian GDP report, which together with macroeconomic releases from the US could produce some short-term trading opportunities.

Credits: Forex Street

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