USD/CAD Analysis

Mar 19, 2020
USD/CAD pair finds resistance close to 1.3600, turns flat close to 1.3570 before U.S. data

1. USD/CAD currency pair didn't break higher than 1.3600 throughout the EU session.
2. Rising crude oil costs facilitate the loonie notice demand.
3. US greenback Index consolidates Tuesday's losses before U.S. data.

The USD/CAD currency pair closed the primary day of the week with modesty lower and extended its slide to a daily low of 1.3509 throughout the Asian session. Though the currency pair staged a decisive rebound throughout the EU forex trading hours, it didn't break higher than 1.3600 and erased its gains. As of writing, the USD/CAD pair nearly unchanged on the day at 1.3565.

The rebound witnessed in crude oil costs looks to be serving to the commodity-sensitive loonie preserve its strength against the dollar. When dropping below $35 on Monday, the barrel of West Texas Intermediate (WTI) closed the day within the positive territory boosted by the rising market sentiment. The WTI continuing to edge higher and was last seen rising 1.82% on the day at $37.75.

Eyes on U.S. data and Powell's testimony

On the opposite hand, the dollar came below a revived selling pressure at the beginning of the week when the Federal Reserve declared that it'll be buying a distributed portfolio of company bonds to support the economy.

The U.S. greenback Index (DXY) lost 0.5% and closed the day at 96.60 on Monday and looks to be having a tricky time convalescent its losses. At the instant, the DXY is flat on the day at 99.60.

In the last half of the day, Retail Sales information from the U.S. is looked upon for recent impetus. Additionally significantly, Jerome Powell, Chairman of the Federal Reserve, can testify on Capitol Hill at 1400 GMT.