The US Dollar finished modestly lower against the Canadian Loonie after Oil prices slid anew despite OPEC’s weekend agreement to cut production by almost 10 million barrels/day, a historic cut. The production cut failed to impress traders, as it fell short of expectations, only just. However global demand due to the coronavirus outbreak has been greatly reduced. The overall weaker Greenback saw a modest dip in USD/CAD to 1.3885 from 1.3900 yesterday.
The Loonie gets a big test when the Bank of Canada announces its monetary policy report following the conclusion of its interest meeting tonight. The BOC is widely expected to maintain policy and keep its overnight rate at a record low of 0.25%. Lower economic data readings in the IVEY PMI which fell to a record, while the country lost more than a million jobs last month. The Bank of Canada will remain dovish and stay accommodative.
USD/CAD has immediate support at 1.3850 followed by 1.3820. Immediate resistance lies at 1.3900 and 1.3940. Look to buy USD dips with a likely range today of 1.3870-1.4130.
