News Stream – CAD

USD/CAD managed to settle below the support at the 20 EMA as oil markets tested weekly highs.

The Canadian dollar strengthened for a third straight day against its U.S. counterpart on Tuesday as the easing of COVID-19 restrictions in China bolstered investor sentiment. Global shares were higher and the price of oil, one of Canada's major exports, rose following China's decision to ease some quarantine requirements for international arrivals, a move that raised hopes for stronger growth and a revival in demand for commodities. U.S. crude prices advanced 1.3% to $110.98 a barrel, while the Canadian dollar was trading 0.3% higher at 1.2844 to the greenback, or 77.86 U.S. cents.

TORONTO (Reuters) -The Canadian dollar was little changed against its U.S. counterpart on Monday, holding on to its gains from Friday, as the recent pullback in commodity prices and bond yields bolstered investor sentiment. Canadian Finance Minister Chrystia Freeland on Sunday said the economy still has a path to a "soft landing," where it could stabilize economically after the blow by the COVID-19 pandemic, without facing a severe recession that many fear. The Canadian dollar was trading nearly unchanged at 1.2896 to the greenback, or 77.54 U.S. cents, after touching its strongest level since June 16 at 1.2865.

USD/CAD is trying to rebound back above 1.2900 after an unsuccessful test of the support level at the 20 EMA.

The U.S. dollar is losing ground against commodity-related currencies.

The Canadian dollar weakened against its U.S. counterpart on Thursday as investors weighed the risk of a global economic slowdown and preliminary domestic data showed factory sales falling in May. The loonie was trading 0.3% lower at 1.2985 to the greenback, or 77.01 U.S. cents, after touching its weakest since Monday at 1.3017. "With recession fears spooking markets more generally, commodity prices were under pressure today, which saw the Canadian dollar also on its back foot," said Royce Mendes, director & head of macro strategy at Desjardins.

The Fed is likely to continue to tighten agressively

The headline and core retail sales beat expectations

The Canadian dollar fell to its lowest level in nearly three weeks against its broadly stronger U.S. counterpart on Monday as oil prices fell and investors weighed the prospect of aggressive interest rate hikes by global central banks to tackle inflation. U.S. crude prices fell 1% to $119.42 a barrel, while the Canadian dollar was trading 0.6% lower at 1.2863 to the greenback, or 77.74 U.S. cents, its fourth consecutive day of losses. Still, speculators have cut their bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday.

Stronger than expected CPI lifted the greenback