The Canadian dollar remains on the back foot, losing ground against the USD for a fifth consecutive trading day. USD/CAD has marched above resistance and is trading above the 1.27 level.
The ongoing dollar storm combined with weaker oil prices weigh on the pair. Can Dollar/CADÂ challenge the multi-year highs?
The US dollar is moving higher across the board. The most notable loser has been the euro, but it is certainly not alone. Other currencies that seemed strong, either from the majors or the commodity currencies, are all succumbing to the dollar’s might, each at its own pace.
The moves are based on higher expectations for a rate hike in June, which have grown since the recent good jobs report from the US
The other factor is oil: while the C$ is not trading in tandem with the black gold, there is certainly a lot of influence. WTI Crude is trading around $48.51. It still has room on the downside in the recent range, but it is at the bottom of it, far from the highs seen at $54. Brent and the Canadian indices are following suit.
More:Â CAD: Staying Short; Credit Agricole
The pair was fighting with resistance at 1.2665, which was the high in mid February. After overcoming this level, the pair crossed the round level and reached a high of 1.2718 so far.
Here is the daily chart
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