The Canadian Dollar is trading at 0.78 against the US Dollar today, up 0.06% with a YTD return of 0.03%. The pair’s open rate was 0.7849, similar to their previous close at 0.7850. CAD/USD is expected to have a daily range between 0.7847 and 0.7866, the 52-week range is forecasted to move between 0.68 and 0.79.
CAD/USD has steadily grown since the market dropped last March when the pandemic hit. The currency pair has been inching above the 0.69 level for months reaching an exchange rate of 0.74 in June and jumping again to the 0.78 range in December.
Since 2021 began CAD/USD has fluctuated between the 0.78 and 0.79 support levels. President Biden’s transition into the White House and the distribution of COVID-19 vaccines allowed the USD to slightly recover moving into February, but CAD/USD has been experiencing growth within the 0.78 level over the past week.
USD has continued to see overnight losses as traders have been “selling for the third consecutive session”; FX Street explains that this drop can be attributed to the selling of USD and “the ongoing bullish run in crude oil prices, which tend to underpin demand for the commodity-linked loonie.”
Both the US and Canada have seen a decline in employment rates recently which is raising doubts regarding how quickly North America is able to recover from the pandemic. High fuel demands have been the saving grace for CAD/USD, with hopes the industry will help foster strong economic recovery in North America.
Saudi Arabia, the top oil exporter globally, has “lifted oil prices to the highest level in 13 months” on Tuesday to the $58.30 region which is contributing to the recent success of CAD. The ongoing rally of oil prices has warranted “some caution for bearish traders amid absent economic data from the US.”
By Surina Nath