USD/CAD through 1.40 as oil slumps

The offered tone around the Canadian dollar remains unabated today, with USD/CAD now piercing the critical 1.4000 handle.

USD/CAD lower on oil


Crude oil prices are extending their rout today, with the barrel of West Texas Intermediate challenging YTD lows in the vicinity of $26.40 and thus collaborating with the selling pressure in CAD.

In the meantime, spot is advancing for the second consecutive session so far, prolonging the bounce off recent multi-month lows around 1.3630.

Ahead in the session, US Initial Claims are taking centre stage ahead of another testimony by Chief J.Yellen.

USD/CAD significant levels

As of writing the pair is up 0.50% at 1.4004 and a surpass of 1.4103 (high Feb.3) would expose 1.4110 (20-day sma) and then 1.4327 (high Jan.26). On the other hand, the next support lines up at 1.3635 (low Feb.4) ahead of 1.3588 (100-day sma) and finally 1.3180 (200-day sma).

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