24.09 - A combination of factors assisted USD/CAD to gain
- by George Solotarov
The USD/CAD pair held steady near multi-week tops, with bulls looking to build on the momentum further beyond the 1.3400 round-figure mark. The pair added to the previous day's strong positive move and gained some follow-through traction through the first half of the trading action on Thursday. The uptick was supported by sustained US dollar buying and a weaker tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.
Worries that the second wave of coronavirus infections threatened to derail the global economic recovery and continued weighing on investors' sentiment, which, in turn, boosted the greenback's safe-haven status. The USD bulls largely shrugged off warnings by various Fed officials, stressing the need for more fiscal stimulus to sustain the recovery.