- USD/CAD gained some sturdy constructive traction and rallied to one-week tops on Thursday.
- The downbeat market temper benefitted the safe-haven USD and remained supportive.
- A steep fall in crude oil costs undermined the loonie and supplied an extra increase.
The USD/CAD pair continued scaling greater by means of the early North American session and shot to recent one-week tops, across the 1.3235 area within the final hour.
A mix of supporting elements prompted some aggressive short-covering transfer on Thursday and assisted the USD/CAD pair to maneuver away from over one-month lows, across the 1.3100 mark touched earlier this week.
Towards the backdrop of a speedy rise in new coronavirus instances, the deadlock over the following spherical of the US fiscal stimulus measures took its toll on the worldwide danger sentiment. This, in flip, benefitted the US greenback’s safe-haven standing.
The USD bulls appeared reasonably unaffected by the disappointing launch of the Empire State Manufacturing Index and the Preliminary Weekly Jobless Claims, as an alternative took cues from the upbeat launch of the Philly Fed Manufacturing Index.
Alternatively, a steep fall in crude oil costs – now down over 3.5% for the day – undermined the commodity-linked foreign money – the loonie – and supplied an extra increase to the USD/CAD pair.
The sturdy intraday constructive transfer took alongside some short-term buying and selling stops positioned close to the 1.3165 horizontal stage. A subsequent transfer past the 1.3200 round-figure mark additional contributed to the newest leg of a sudden spike over the previous hour or so.
The incoming headlines over the US fiscal stimulus measures will affect the USD value dynamics and produce some buying and selling alternatives. Therefore, it stays to be seen if the USD/CAD pair is ready to capitalize on the transfer or meets with some recent provide at greater ranges.
Technical ranges to look at