Forex market has witnessed a steady USD while at the same time; market is witnessing the weakness of CAD. The vaccination rollout process is going on at different pace in USA and Canada. The traders of CAD are a bit worried due to the weakness of CAD. But the price of this trading pair of USD/CAD has spiked up 0.66%. The major cause and basis of this jump is the significant rise in the Treasury yields. The Treasury yields of long-term particularly the 10-years bond enjoying an increase of more than 1.70%. It has happened after a long and bumpy journey of more than two years. Obviously it is a table turning move in Forex market.
At the same time, the newly imposed restrictive measures and lock downs in different countries are also not giving positive vibes about the global mobility. Thus keeping in view the current scenario, you can assume that the global mobility will not recover at a fast pace. It is going to take due time. the slow pace of the recovery of global mobility is another cause of the weakness of CAD. The economic damage that the pandemic caused is not going to recover overnight. These negatively affecting economic factors are obviously going to affect the Forex trade. Like all other trading pairs, USD/CAD is no exception.
Vaccination Rollout and weakness of CAD:
The new waves of virus also continue to stir the feelings of the traders world-wide. The vaccination rollout is another related factor that is capping the growth of CAD. The vaccination rollout in Canada is very slow and inefficient. Mere 7.4% people got one dose of vaccine. This slow process is related to the weakness of CAD. While on the other hand, in case of USA, this process is goin on very smoothly. About 22% population got one dose of vaccine which is far more than the population of Canada.