Search ForexCrunch
  • USD/CAD prints gains for the first since Oct. 6
  • The anti-risk dollar draws bids alongside losses in the US stock futures. 
  • Losses in oil add to bearish pressures around the CAD.

The bid tone around the US dollar strengthened during Tuesday’s Asian trading hours, pushing USD/CAD higher for the first time since Oct. 6. 

The pair is currently trading near 1.3133, representing a 0.18% gain on the day, having declined from 1.3341 to 1.3101 in the previous four trading days. 

Broad-based dollar bounce

The dollar index, which tracks the greenback’s value against majors, is rising and currently hovering near 93.17, up 0.15% on the day. 

The anti-risk greenback is again drawing bids alongside losses in the S&P 500 futures. 

Further, the news is crossing the wires that Johnson and Johnson’s coronavirus vaccine trial has been paused and looks to be boosting demand for the US dollar. 

And lastly, weakness in the West Texas Intermediate (WTI), the North American oil benchmark, could be weighing over the Canadian dollar. The WTI is currently trading near $39.45 – down nearly 4.9% from the Oct. 9 high of $41.47.

Risk aversion, however, may not last long, courtesy of expectations for an additional US fiscal stimulus. As such, USD/CAD may have a tough time scoring big gains. 

Technical levels