USD/CAD range trade around 1.40 continues
USD/CAD tried to break 1.40 on US dollar weakness earlier today but the risk-off tone in broader markets has sent the pair back close to flat on the day at 1.4065.
The loonie has confounded market watchers during COVID-19. It was the top performer last year as the US-China trade dispute was resolved.
Now we have an unprecedented hit to global growth and a cratering in energy prices yet the loonie has held up fairly well.
I think the chart is the spot to watch. We’re right in the middle of the range and it’s going to take a break of 1.3850-1.4200 at the very least to get this pair really moving. Within that, it’s all noise.