USDCAD09072020The USD/CAD pair remained depressed through the early European session, with bears now looking to extend the fall further below the key 1.3500 psychological mark. Despite the ever-increasing number of new coronavirus cases, investors remain cautiously optimistic amid hopes of a sharp V-shaped global economic recovery. This, in turn, continued denting demand for the safe-haven US dollar and kept the USD/CAD pair on the defensive through the first half of trading action on Thursday.

This comes on the back of the previous day's fall of around 130 pips from levels beyond the 1.3600 mark, or weekly tops, and support prospects for further weakness for the USD/CAD pair. However, a modest pullback in crude oil prices might undermine the commodity-linked currency – the loonie and help limit deeper losses.