26.10 - A combination of factors assisted USD/CAD to gain some strong traction
- by George Solotarov
The USD/CAD pair edged higher through the early European session and shot to fresh daily tops, around the 1.3175 region in the last hour. The pair managed to regain positive traction on the first day of a new trading week and snapped two consecutive days of the losing streak. The uptick was sponsored by a modest pickup in the US dollar demand and the ongoing slide in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.
The greenback found some support on Monday amid growing market worries about surging coronavirus cases in Europe and the United States. Adding to this, the disappointment over the next round of the US fiscal stimulus measures further weighed on investors' sentiment and benefitted the USD's status as the global reserve currency