The US Dollar skyrocketed to fresh 4-year highs against the Canadian Loonie to 1.42759 overnight before easing to settle at 1.4245 in late New York trade. USD/CAD pair rallied on the back of broad-based US strength and a drop in 5% slump in Brent Crude Oil prices.
Canadian 10-year bond yields rose 20 basis points to 0.97% which is the biggest rise among its global peers. While it’s still behind the US 10-year rate climb of 26 basis points, its not far behind. At the end of the day, a weaker US Dollar due to poor economic data will ease the pressure on the Canadian Loonie.
USD/CAD has immediate resistance at 1.4280 and 1.4320. Immediate support can be found at 1.4210 followed by 1.4180. Look to sell any rallies to 1.4280 with a likely range today of 1.4160-1.4260.