The Canadian dollar today extended its winning streak against the US dollar as the recovery in crude oil prices saw the US crude oil trading sideways in a tight range. The USD/CAD currency pair fell for the third consecutive session as crude oil prices recovered strongly from Monday’s crash despite concerns about global demand for the commodity.
The USD/CAD currency pair today fell from a high of 1.4115 in the early European session to a low of 1.4024 later in the session and was headed lower at the time of writing.
The pair initially headed higher as the greenback rallied driven by investor sentiment after it emerged that Gilead Sciences’ drug Remedisvir had failed to help critically ill coronavirus patients in a clinical trial. Investors flocked to the safe-have dollar as their risk appetite evaporated on concerns about the impact of the COVID-19 pandemic on the global economy. The recovery in US crude oil prices as tracked by the West Texas Intermediate, which traded as high as 18.12 earlier today, also boosted the loonie.
The high number of US initial jobless claims data released by the Department of Labor yesterday also weighed on the greenback contributing to its decline. The currency pair’s decline seems to have stopped at the crucial 1.40 level, where it bounced off yesterday; a break below this level could signal further declines.
The currency pair’s short-term performance is likely to be affected by crude oil prices and the US durable goods orders set to be released at 12:30 GMT.
The USD/CAD currency pair was trading at 1.4055 as at 11:48 GMT, having fallen from a high of 1.4115. The CAD/JPY currency pair was trading at 76.55, having risen from a low of 76.27.
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