Dec 15, 2020 20:12 GMTFXStreet News
USD/CAD has dropped below the 1.2700 level for the first time since April 2018 in recent trade.
US fiscal stimulus hopes appear to be behind a broader risk on move that has driven downside in the pair.
Looking ahead, loonie traders are on notice for BoC speak from Governor Tiff Macklem at 19:30GMT.
USD/CAD has been pushing to the south on Tuesday and dove to fresh yearly lows beneath the 1.2700 level in recent trade. An increasingly risk on market feel, as well as technical selling has been driving the pair lower. USD/CAD now trades pretty much bang on 1.2700 with losses on the day of around 60 pips or 0.5%, with the pair having now completed a 100 pip reversal from Monday highs and trading at its lowest level since April 2018.
12/15/2020 9:01:18 PM GMT | By Joel Frank
NZD/USD is consolidating just beneath the 0.7100 level ahead of Q3 Current Account numbers.
NZD has benefitted from a broad risk-on wave on the back of stimulus hopes that undermined demand for USD.
NZD/USD has put in a solid performance thus far this Tuesday, and currently trades just to the south of the 0.7100 level. At present, the pair is trading with gains of around 20 pips or just under 0.3% on the day.
NZD boosted in tandem with other risk assets
Its been a risk-on day, with gains in the likes of USequities (the S&P 500 is trading over 1% higher) and crude oil markets (WTI is also trading over 1% higher) being driven by hopes that the US lawmakers can agree a deal on further Covid-19 in crunch talks which are slated to begin at 21:00GMT.