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USD/CAD: No takers for Canadian dollar despite upbeat comments by BOC’s Poloz

  • USD/CAD is reporting marginal gains, having hit a low of 1.3236 in the overnight trade. 
  • The CAD is struggling even though BOC's Poloz said the economy is in a good place. 
  • Renewed coronavirus scare is likely keeping the CAD bulls at the bay. 

The Canadian dollar is struggling to draw bids despite upbeat comments by Bank of Canada’s chief Poloz. 

The governor was out on the wires a few minutes before press time, stating that the Canadian economy is in a pretty good place and the rates would have been much lower without the fiscal stimulus. 

So far, Poloz’s upbeat take on the economy has failed to inspire the CAD bulls. In fact, the USD/CAD pair is currently trading at 1.3255, representing marginal gains on the day, having bounced up from 1.3236 during the overnight trade. 

The CAD’s inability to score gains on Poloz’s comments could be associated with renewed coronaviru scare.

Hubei government reported 15,000 new cases earlier today, weakening the bid tone around the risk assets and sending the safe havens like the yen higher. The S&P 500 futures are currently reporting a 0.30 percent drop and the WTI oil is down more than 0.25% at $51. 

Its worth noting that Hubei has revised its classification method to include the “clinically diagnosed”  in the data - those who exhibit symptoms but haven't been tested positive yet. 

The market may revise the historical data using the new method to assess the trend in new cases. If the trend appears to be slowing, the risk assets may pick up a bid, helping the CAD score gains. 

Technical levels

 

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