Forex
Dollar Rebound Stalls at Key Support Zone Amid Oil Price Strength
The US dollar has rebounded against the Canadian dollar after plummeting to near two-month lows last Friday. The pair currently trades around 1.3950, a key short-term support zone for USD/CAD.
A near-two month low was reached on Friday at 1.3925, but this week's rebound has stabilized the exchange rate. Despite weak US employment data, safe-haven demand for the dollar and geopolitical risks have bolstered its value.
Crude oil prices remain strong, supporting the Canadian dollar due to Canada's heavy reliance on energy exports. Higher oil prices typically benefit the loonie, capping upside potential for USD/CAD.