CAD: The rally in USDCAD paused near the 1.3200 threshold after a recovery in risk sentiment, as investors became less fearful of the economic fallout from China's spreading coronavirus, with the #loonie recovering from a nearly seven-week low it hit earlier in the day. Short-term support is located at 1.3110/20 in this regard, with 1.3200/05 serving as resistance.
Oil prices recovered, which took the loonie off its seven-week lows. The price of oil, one of Canada's major exports, rose after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand. U.S. crude oil futures settled 0.6% higher at $53.48 a barrel.
CAD has weakened 1.3% since the start of the year after rallying 5% in 2019, when it was the top-performing G10 currency. Last week, the Bank of Canada left its benchmark interest rate unchanged steady at 1.75%, as expected, but said a future cut was possible should a recent slowdown in domestic growth persist.
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