The Canadian Dollar (Loonie) played catch-up with its risk and Dollar bloc partners, the Aussie and Kiwi, slumping 1.5% against the US Dollar. USD/CAD soared to February 2016 highs at 1.40178 before easing to settle at 1.3995. The combination of weaker risk currencies and a 12 % drop in Brent Crude Oil prices to under USD30.00 weighed on the Canadian currency.
The Bank of Canada cut interest rates earlier this month and is not expected to repeat the move until it meets next month (April). The Covid-19 spread in Canada is less widespread than other countries around the globe including its southern neighbour. For now.
USD/CAD has immediate resistance at 1.4020 followed by 1.4050. Immediate support lies at 1.3960 followed by 1.3910. Look for a likely trading range today of 1.3920-1.4020. Prefer to sell rallies.