The US Dollar soared against the Canadian Loonie following another fall in Oil prices with Brent slipping 5.68% to USD 30.30. OPEC’s weekend historic production cut agreement was the deepest ever but fell short of expectations. A global demand glut, unprecedented due to the coronavirus outbreak kept oil prices pressurised. While the Bank of Canada held interest rates steady, it maintained a dovish stance. According to a Reuters report the BOC added provincial and corporate bonds to its QE program, and said “it stands ready to adjust the scale or duration of its program if necessary.”
USD/CAD traded to an overnight low at 1.38763 before reversing sharply higher in volatile trade to 1.41324 before easing to settle at 1.4107 at the New York close. USD/CAD has immediate resistance at 1.4150 followed by 1.4200. A break above 1.4200 could see us back to 1.4300. Immediate support can be found at 1.4080, 1.4020 and 1.3980. Look for a high volatile trading range between 1.40 and 1.4300. Prefer to buy USD dips toward 1.4000 with oil prices looking shaky.