The USDCAD pair moved up slightly as investors remained concerned about the rising coronavirus cases in the United States. The pair is trading at 1.3650, which is higher than this week’s low of 1.3485. At the same time, the US dollar index is down by 10 basis points.
ING expects Canadian dollar to climb
In a note earlier today, analysts at ING said that they expected the pair to head lower, boosted by rising oil prices. The price of Brent is up by 0.80% while WTI is up by 0.60% after news that Russia has slashed Urals to the lowest level in ten years. According to ING, this news is enough to boost the Canadian dollar, which is the worst performing G10 currency this week. The report said:
“Oil is finding some respite today after a grim week as Russia cut Urals crude to the lowest in 10 years, another indication of Russia’s resolution to keep aligning with the OPEC+ efforts to offset lacklustre demand. “
USDCAD reacts to rising US coronavirus cases
The USDCAD is also reacting to news that US coronavirus cases are rising. In a report yesterday, health officials said that the number of new infections had jumped by more than 39000. In another report, CDC said that the current numbers were not accurate. Instead, the organisation said that the real number was probably more than 20 million.
And, according to Washington University, the number of US deaths related to coronavirus will continue to rise in the near term. This statement mirrors the assessment of Dr. Anthony Fauci, who predicted that the coming days will be dire.
The USDCAD pair is trading at 1.3650, which is higher than this week’s low of 1.3485. On the daily chart, the price is below the 50-day and 100-day exponential moving averages. It is also slightly below June’s high of 1.3687. A closer look shows that the pair has formed a triangle pattern, which means that the price may ultimately break-out upwards as bulls attempt to move above 1.3700.
On the flip side, a move below 1.3488 will invalidate this prediction. This price is at the intersection of the ascending trendline and the lowest level on June 23.