The USD/CAD currency pair struggled to maintain its upward momentum today even as US markets remain closed. The pair demonstrated mixed results similar to those of last week given that weakness in the US dollar typically strengthens the Canadian dollar.
The US dollar rallied higher during today’s session, as indicated by the US Dollar index, but the currency pair has not reflected the greenback’s rally. The currency pair remained in positive territory for the day but has stuck within a resistance level below 1.3165.
The Canadian dollar was significantly weaker today given that the market sentiment towards oil was quite weak. The strength of the loonie is directly linked to global oil prices because the country is a major oil exporter.
The US markets were closed as the country celebrates Martin Luther King Day and it seems that many investors adjusted their positions in favor of the greenback.
The future direction of the USD/CAD currency pair shall be determined by events such as the monetary policy decisions to be announced by the Bank of Canada, and the inauguration of Donald Trump as the US president.
The USD/CAD was trading at 1.3162 as at 17:04 GMT having opened trading at 1.3131. The GBP/USD was trading at 1.2051 having started the day’s session at 1.2043. The USD/JPY was trading at 114.17 having opened trading at 114.33.
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