CAD to USD Daily Overview: March 5th

CAD to USD Daily Overview: March 5th

The Canadian Dollar is trading at 0.78 against the US Dollar this morning, down -0.29% with a YTD return of 0.24%. The pair’s open rate was similar to their previous close at the 0.78 range. CAD/USD is anticipated to have a day range between 0.78 and 0.79, their 52-week range is forecasted to fluctuate between 0.68 and 0.80.

Since dropping to the 0.69 level a year ago, CAD/USD has been moving in an upward trend but continues to follow bullish trading tendencies. Last June the pair’s exchange rate jumped to 0.74, then again to the 0.78 range in December. Throughout February CAD/USD stayed within the 0.79 range, almost reaching the 0.80 level by the end of the month. Over the past week, the currency pair has held steady as the CAD/USD exchange rate continues to straddle the 0.78-0.79 support levels.

The last time CAD/USD was performing this well was in Q1 2018; the pair has been edging closer and closer to the 0.80 level which is becoming more likely by the day as the Canadian market continues to be backed by oil.

CAD has gotten a boost in recent weeks, FX Empire reported that “as WTI oil rallied above the $64 level on reports that OPEC+ will keep its current production cuts intact. Saudi Arabia will keep its voluntary production cuts of 1 million barrels per day (BPD) for the month of April which is a major surprise for the market.”

In the US, initial jobless claims were reported to increase from 736,000 to 745,000, analysts also said the country’s continuing jobless claims declined from 4.42 million to 4.3 million but this shouldn’t impact USD in the long-term. “US Treasury yields pulled back a bit but remain close to recent highs which may provide additional support to the American currency.”

By Surina Nath