- Oil prices drag CAD.
- Corona supports USD, while stimulus hope weighs on it.
- Oversold conditions help ward-off selling in USD/CAD.
USD/CAD trades slightly in the red without attracting much bearish pressure as weak oil-prices, firm US-treasury-yields and pandemic worries lend support to the pair.
The paid trades near the lower end of its daily range today, slipping below 1.2800.
The overnight recovery move from the lowest level since April 2018 met with fresh selling today right from the start of the session. The prime reason for the current slide, despite bond yields, is the progress towards more US fiscal stimulus measures.
The pandemic worries help the safe-haven appeal of the dollar, thus underpinning the USD/CAD along with weak oil prices weighing on the CAD.
The pair’s inability to sustain recovery moves indicate further bearishness ahead. Even so, the short-term oversold conditions warrant some caution from bearish traders.
The US and Canada economic dockets are light today, and hence the broad market sentiment could drive the action in the day ahead. The BoC monetary meeting tomorrow will be a major event to look forward to this week.
At the time of writing, one US dollar buys 1.2794 Canadian dollars, slightly down -0.02% as of 8:30 AM UTC.