USD/CAD tests yesterday's support as the mood dramatically improves

USD/CAD is down 25 pips on the day and testing support from a pair of lows over the past 24 hours.

The main catalyst is a rapidly-improving mood in risk assets. The Nasdaq is up 2.75% and the S&P 500 up 2.3%. Both have bounced around recently but the bulls look like they're finally making a strong stand ahead of the Nasdaq NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term's lows of the year. That will be tested with Amazon set to report after the close.

CAD CAD The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i Read this Term is also getting support from the oil market with crude up $1.82 to $107.14 on a report that the EU is set to adopt a gradual ban on Russian oil.

If anything, the bounce in FX is less than stocks and oil might indicate. AUD still remains in negative territory and NZD is down significantly. The US dollar bid has become a beat of its own as dollar bulls pile in as it marks out multi-year highs against the yen, pound and euro. CAD strength against the yen might be more indicative of the broader improvement in the mood.