USD/CAD extends slide to the 1.3525 area
- Canadian dollar outperforms among commodity currencies, on a quiet day.
- USD/CAD down on Monday, still unable to move off 1.3550.
The USD/CAD dropped further during the American session and printed a fresh daily low at 1.3528. As of writing, it trades at 1.3530, holding onto daily losses but still moving in the recent familiar range.
A weaker US dollar across the board pushed the USD/CAD to the downside. The DXY is falling 0.07% on Monday, after being unable to remain in positive territory and it is on its way to the lowest daily close since early March.
US Equity prices are mixed. The Dow Jones losses 0.14% while the S&P 500 gains 0.40%. Crude oil prices show little change so far. The WTI barrel continues to trade slightly below $41.00, around monthly highs.
“We expect risk sentiment to continue to be an important driver, but also think CAD has some catching up to do from a fundamental perspective such as oil prices. WTI have found a bottom and continue to steadily rise. This may continue to support CAD over our forecast horizon as our forecast WTI at 56$/bbl in 12m. We think we are past the bottom in activity, which may support CAD”, explained analysts at Cibitank.
Technical levels