USD/CAD extends bearish gap as Oil spikes through $54 WTI

USD/CAD has been offered on the back of the non-OPEC accord with OPEC members that came to fruition over the weekend.

It was a slow reaction in the market, but eventually oil jumped on the back of the pledge to lift the value and prices of oil in a bid to support the economies that have been hit hard by the glut of oil that started over two years ago by the 13 non-OPEC members agreed to cut crude output by 558,000bpd.

That volume is in addition to the 1.2 million barrels a day in cuts from OPEC members, and this is amounting to a total of almost 2% of global oil supply - Russia have pledge to cut by 300,000bpd.

USD/CAD levels

USD/CAD's bearish trajectory is intact and has been one-way since late November, observed analysts at Scotiabank, explained that this shows no sign of stopping. "Short-term trend momentum has strengthened and spot is heading for a test of the broader bull channel trend at 1.3090/00 that comes into focus."