Canadian Dollar Boosted by Market Optimism, Oil Prices
Ming Lam May 27, 2020 3:11 AM
USD/CAD plunged 1.5% to end overnight's session at a two-month low of 1.3784...
Overnight the U.S. dollar weakened against other major curries as investors' risk appetite improved. Market sentiment was boosted by potential development of coronavirus vaccines and further easing of lockdown measures in the U.S. and around the world.
Federal Reserve Bank of St. Louis President James Bullard said he expects the U.S. economy to recover strongly in the third quarter, with jobless rate dropping below 10% by the year-end.
The Dow Jones Industrial Average jumped over 2% to near the 25000 mark, while the ICE U.S. Dollar Index slid 0.7% on day to a three-week low of 99.01.
Meanwhile, U.S. WTI crude oil futures (July) increased 3.3% to $34.35 a barrel. And the Canadian dollar rose along with oil prices.
USD/CAD plunged 1.5% to end overnight's session at a two-month low of 1.3784.
On an Intraday 30-minute chart, USD/CAD has located a Key Resistance at 1.3825.
Source: GAIN Capital, TradingView
USD/CAD is currently trading at levels around the descending 20-period moving average, which stays far below the 50-period one.
A return to 1.3755 (around the low seen overnight) would place the next Downside Support at 1.3710 into sight.
Alternatively, a break above 1.3825 would open a path toward 1.3860 on the upside.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.