The USD/CAD pair finished little-changed at 1.3765 from 1.3770 on Friday despite higher Oil prices and broad-based US Dollar weakness. Canada’s May GDP bettered forecasts at -9.0% with a -7.2% print although this was much worse than April’s 0.0%. USD/CAD hit an overnight and March 12 low at 1.37143 before climbing in late New York. Much of the Canadian Dollar’s support came from comments by outgoing Bank of Canada head, Stephen Poloz. Newly appointed BOC Governor Tiff Macklem begins his reign on June 3 (Wednesday). Macklem, who was Poloz’s assistant has tended toward negative rates to combat the fall in Canada’s economy due to the coronavirus pandemic.
The rising US-China tensions are also negative for Canadian trade and will weigh on the Loonie.
USD/CAD has immediate resistance at 1.3800 and 1.3840. Immediate support can be found at 1.3745 and 1.3715. Look to buy dips in a likely range today of 1.3740-1.3840.