USD/CAD – Breaks Lower, Oil Up, USD Down, CAD GDP Next; 1.3850 Solid

Against another one of the commodity trio of currencies, the Loonie, the US Dollar slid 0.76% to 1.3885 from 1.3995 yesterday. A rebound in Oil prices led by the 25% rally in West Texas Immediate and the overall weaker Greenback boosted the Loonie.

FXStreet USDCAD Daily Chart - 30 April 2020
FXStreet USDCAD Daily Chart – 30 April 2020

USD/CAD traded to an overnight low at 1.38779 before settling at 1.3885 in late New York. Immediate resistance lies at 1.3880 followed by 1.3850. Immediate resistance can be found at 1.3910 followed by 1.3960. Canada releases its February GDP report tonight with expectations of a 0.1% expansion matching January’s 0.1%. The coronavirus outbreak will not affect the data. Canada’s big test comes next week with the release of its Employment report which is expected to seel its biggest drop in over 20 years.

Until then, the USD/CAD will be dictated by the US Dollar. Expect a likely range today of 1.3870-1.4120. Prefer to buy dips, a turnaround higher for USD/CAD should ensue.

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