Against the Loonie, the US Dollar retreated to 1.3995 New York close from 1.4045 yesterday. Broad based US Dollar weakness and a stabilising Oil prices supported the Canadian Dollar. Brent Crude Oil prices steadied, finishing up 4.05% at USD 21.00. The US West Texas Intermediate (WTI) oil prices erased majority of its losses. USD/CAD saw an overnight low of 1.3936 in highly volatile trade before rebounding in late New York. Overnight high for the USD/CAD pair was seen earlier in Asia at 1.40727.
Apart from the US data and Fed meeting, the spotlight this week for the Loonie is Canada’s February GDP report due on Thursday. Expectations are for an improvement in Q1 to 0.2% from 0.1%. The coronavirus outbreak had not yet impacted the global economy at the time. Still the risk is for a disappointment in the report.
USD/CAD has immediate resistance at 1.4020, 1.4070 and 1.4150. Immediate support is found at 1.3960 and 1.3920. Look to buy dips today with a likely range of 1.3970-1.4120.