usdcad13052020

The USD/CAD pair edged lower through the Asian session on Wednesday and was last seen hovering around the lower end of its daily trading range, near mid-1.4000s.

The pair met with some supply on Wednesday, snapping two consecutive days of winning streak and for now, seems to have stalled this week's goodish recovery move from the 1.3900 round-figure mark. The pullback lacked any obvious catalyst and seems more likely to attract some dip-buying amid a weaker tone surrounding oil prices.

Concerns that a premature easing of lockdowns could lead to the second round of outbreak of the deadly coronavirus overshadowed Saudi Arabia's commitment to further deepen oil production cuts in June. This, in turn, led a modest pullback in oil prices, which might undermine the commodity-linked loonie and extended some support to the major.

 

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