The Canadian dollar today lost ground against its southern neighbour amid driven by the flight to safety mood that dominated the financial markets today. The USD/CAD currency pair rallied today as investors were spooked by the rising coronavirus cases globally, which pose a direct threat to the ongoing global economic recovery.
The USD/CAD currency pair today rallied from an Asian session low of 1.3501 to a high of 1.3581 in the American market and was near these highs at the time of writing.
The currency pair traded sideways at the start of today’s session as the Bears took a break from yesterday’s massive fall at the crucial 1.3500 level. The pair then rallied higher as investors favoured the greenback over the loonie. The slight drop in oil prices as tracked by the West Texas Intermediate, which hit a low of — today also did not help the commodity-linked loonie. Investors were worried that President Donald Trump would impose further sanctions on top-ranking Chinese officials over the Hong Kong security law. However, this did not materialise.
The release of Canada’s employment data for June by the ADP also did not help the loonie. The report showed that Canada added 1,042,900 in June, but the May print was revised from +208,400 down to -2,951,400 weakening the loonie further. The upbeat US retail sales data for June released by the Census Bureau also boosted the pair.
The currency pair’s future performance is likely to be affected by crude oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.3577 as at 19:58 GMT having risen from a low of 1.3501. The CAD/JPY currency pair was trading at 79.07 having fallen from a high of 79.28
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Canadian Dollar Weakens Against US Peer on Flight to Safety Mood
