USD/CAD rises above 1.40 as oil bounce stalls and S&P 500 futures dip
- USD/CAD is better bid amid losses in oil and US stock futures.
- President Trump's comments on China revived trade war fears.
- The OPEC+ output cut deal is scheduled to take effect from May 1.
USD/CAD is gaining altitude during Friday's Asian trading hours with oil pulling back from overnight highs and the US stock futures flashing red on renewed trade concerns.
Prints high above 1.40
The USD/CAD pair printed a high of 1.4005 soon before press time, having found bids around 1.3929 during the early Asian trading hours. The pair is reporting gains for the second day.
The dollar picked up a bid after President Trump's criticized China for its handling of the coronavirus outbreak and threatened to retaliate with tariffs, renewing trade war fears.
Meanwhile, the West Texas Intermediate (WTI) crude, the North American oil benchmark, fell from $20.45 to $19.40, adding to bearish pressure around the loonie. Oil looks to be feeling the pull of gravity due to trade concerns and the resulting risk-off in the US stock futures.
At press time, the futures on the S&P 500 are down 1.5%. The US stocks dropped on Thursday after the official data showed another 3.84 million Americans filed for first-time jobless claims in the previous week. Further, heavyweights like Amazon and Apple offered sobering comments about the impact of the coronavirus on the economy.
The recently agreed OPEC+ deal to cut output by 9.7 million barrels per day will take effect from Friday. As a result, an oil price recovery cannot be ruled out, in which case, the CAD may pick up a bid.
Technical levels