Against the Canadian Loonie, the US Dollar closed 0.31% higher at 1.3415 from 1.3380 yesterday. While US bond yields eased, Canada’s 10-year rates also declined to 0.63% from 0.67%. Oil prices were mixed. Brent Crude was 0.39% lower to USD 40.85 while WTI finished 0.47% higher to USD 38.55. The USD/CAD pair had its own highly volatile trade between 1.33593 and 1.34882 overnight.
The Loonie’s fate hangs with the Fed, Jerome Powell and the US Dollar.
USD/CAD has immediate resistance at 1.3470 and 1.3520. Immediate support can be found at 1.3380 and 1.3350. A corrective move higher if the Fed is less dovish than most economists expect is a strong possibility for the USD/CAD pair. Prefer to buy dips with a likely range of 1.3370-1.3520 likely.