USD/CAD dropped to January’s levels

USD/CAD dropped to January’s levels

2020-08-27 • Updated

USD/CAD reached levels unseen since the beginning of the year. ING considers the pair may fall further, but Bank of America warned that it may hit its bottom and reverse in the long run.


As you may know, the Canadian dollar is positively correlated with oil prices. When the oil market is on the rise, the loonie is in high demand, too. Yesterday, WTI oil’s price surged to the levels unseen since early March. According to Bloomberg, the hurricane in Mexico forced oil refineries to shut down and stop oil production. In addition, ING points to Russian oil cuts to the lowest levels in almost ten years. The leap of oil prices should push the CAD upper. Watch out today’s report of US crude oil inventories at 17:30 MT time! They may have an impact on the oil market.

Bank of America is confident that the recent euphoria about the global recovery soon is gone, and investors have become more realistic. They weigh more on possible risks and slower economic rebound. They forecast that USD/CAD may return to 1.3700 during this quarter and to 1.400 at the end of the year.

Unlike Bank of America, ING is quite confident that the pair will keep declining and may reach the area of 1.2500-1.2600 in the first half of 2021. Besides, they emphasize that the Canadian dollar has been performing worse than other currencies of G10. It has happened because of the close dependence from the US economy. Investors were worried about that amid the second virus wave. However now, when the infections curve is declining, those doubts are waning. Therefore, the Canadian dollar has all chances to catch up the lost ground. 

Technical tips

USD/CAD has been trading in the descending channel since late June. ING believes there is more room for a further fall of the loonie. Bank of America allows that the consolidation may continue until the pair reaches the strong support of 1.3000, which should be the point of reverse.

If the price breaks down the support of the low of January 23 at 1.3120, it will fall deeper to the next support of 1.3045. Otherwise, the move above the recent high of 1.3215 will drive the price to the next resistance of 1.3300.




Oil Market Outlook
Oil Market Outlook

Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.

China’s rebound and energy prices
China’s rebound and energy prices

China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?

Latest news

Gold and the Majors ahead of the NFP
Gold and the Majors ahead of the NFP

Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.

The Oil Market in the Month of June
The Oil Market in the Month of June

Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera