“Oh, what a night.” The USD/CAD pair went Loonie, trading between an overnight low at 1.4150 and 1.4535 before slipping to settle at 1.4335 in New York. This morning, the risk-off stance saw USD/CAD jump to 1.4488. On Friday, Brent Crude Oil prices dip to USD 29.00 from Thursday’s USD 28.30.
USD/CAD has immediate resistance at 1.4525 followed by 1.4600. A break of 1.4600 could see 1.4670, highs reached on 19 March. Immediate support can be found at 1.4370 followed by 1.4330 and 1.4270. US 10-year bond yields on Friday plunged 29 basis points to 0.85%. Canada’s 10-year bond yield closed 13 basis points lower to 0.86%. That yield differential will favour the Loonie over its southern counterpart.
Look for a choppy trade, likely between 1.4320 and 1.4520. Prefer to sell rallies as the Covid-19 toll continues to surge in the U.S.