USD/CAD Sets to Reclaim 1.2500 Near 9-Week Low on Easier Oil, Stronger USD

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USD/CAD is recovering around a 2-month low, rising by 0.12 percent around in-day 1.2500 during the early hours of today in Europe. To do this, the pair recorded its 1st daily gains in 10 as the value of Canada’s main export substance (crude oil) dropped. Another factor promoting the pair’s value is the risk-off feeling, and stronger yields, which strengthened the dollar.

Factors Behind the New Found Strength
Also, the WTI crude oil value records 1.9 percent in-day loss while dipping to $109.70 by news time. The crude oil’s new weakness could be connected to the lock-down caused by covid in China. It is important to know that the attacks on the Houthi Saudi Arabia oil facility and the struggle between Russia and Ukraine are keeping oil traders optimistic.

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Somewhere else, the US ten-year Treasury yield rises by 5.4bps to the highest level ever reached since the fifth month (May) in 2019 near 2.54 percent by news time, and this subsequently pushed the DXY(Dollar index) towards a 2-week high. Another factor strengthening the USD/CAD is the increasing tension between Russia and the West, and the indecision about the Kyiv-Moscow discussion.

As opposed to this background, the S&P 500 Futures regresses from a 7-week high, fell by 0.33 percent in-day around 4,521 by news time.

Going forward, the US goods Trade Balance and Wholesale stocks for last month (February) can control in-day moves. Nevertheless, the main attention will be on the risk promoters, which consist of headlines about the Struggle between Ukraine and Russia, covid reports, and yields.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.