27.07 - USD/CAD hangs near multi-week lows
- by George Solotarov
The USD/CAD pair remained depressed through the early European session and was last seen hovering near the lower end of its daily trading range, around the 1.3385 region. The pair came under some renewed selling pressure on the first day of a new trading week and moved back closer to six-week lows set last Thursday amid the heavily offered tone surrounding the US dollar. Growing market concerns that the economic recovery in the US could be grinding to a halt amid the resurgence in coronavirus cases continued exerting downward pressure on the greenback.
Adding to this, intensifying US-China tensions now seemed to fuel speculations that the Fed would add more stimulus for a longer period of time and in bigger quantities to support the economy. This was evident from the ongoing downfall in the US Treasury bond yields, which further undermined the sentiment surrounding the greenback and contributed to the USD/CAD pair are offered tone.