Canadian Dollar Update, May 26, 2020 – Canadian Dollar jumps, Risk sentiment improves
USD/CAD Open: 1.3884-86, Overnight Range: 1.3786-1.3985
WTI Oil is at $33.89 and gold is at $1,708.30. US markets are higher today.
For today, USD resistance is at 1.3870. Support is at 1.3749.
• China tensions overshadowed by global economy re-openings
• Oil price jump gives Canadian dollar added support
• Commodity currency bloc rally drives US dollar lower
Americans and the UK returned from their long weekend holiday refreshed and eager to take on risk. Lockdown restrictions implemented across the globe to combat the COVID-19 pandemic are easing. British Prime Minister Boris Johnson told reporters on Monday that non-essential retailers, which include outdoor markets and car dealers, can start reopening beginning June 1.
Bank of Canada Governor Stephen Poloz delivered a lecture at the University of Alberta yesterday. He did not announce any new policy initiatives but warned that future monetary policy decisions face “unparalleled uncertainty” because of the measures used to fight the impact of the pandemic. Traders will be looking for insight from his appearance before the Standing Senate Finance Committee on National Finance today. Senior Deputy Governor Carolyn Wilkins will join him.
New Home Sales, Case-Shiller Home Price Index, and Consumer Confidence reports are released in the US. The Canadian calendar is empty.
Today’s Suggested Range USD/CAD: 1.3830– 1.3930
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By KBFX | May 26, 2020 | Daily Update | 0 comments