Canadian provinces and territories have been gradually reopening. As of today, Canada reported  109000  total cases of COVID 19. Canada’s federal government will give the 13 provinces and territories more than C$19 billion ($14 billion) to help pay for the costs of restarting the economy after several months of COVID-19 pandemic lock-downs, the prime minister said on Thursday.

The cash is meant to cover the extraordinary costs for the coming 6 to 8 months. Prime Minister Justin Trudeau said in a news conference, and will take care of “the kinds of things that actually really matter to Canadians,” including preparing for a possible “second wave” of contagion. The things included are contact tracing, providing protective equipment to workers, helping struggling municipalities pay operating costs, aiding local transit operators, “safe spaces” for daycare, and improving long-term care for the elderly.

Deputy Prime Minister Chrystia Freeland said that ‘The money will also allow the government to provide up to 10 days of sick leave for those who do not already have it”.”COVID-19 isn’t just a health crisis, it’s an economic crisis, too,” Trudeau said. “Because until we find a vaccine, the daily threat of COVID-19 will not disappear.”

Cases of COVID 19 cases are rising continuously across the world which creates a fear of second wave of the virus. In the hunt for a vaccine against COVID-19, encouraging news emerged about two candidates on Wednesday. The New England Journal of Medicine published an interim analysis describing an immune response generated in participants of phase I clinical trials for a vaccine developed by US-based biotech company Moderna. Meanwhile, ITV reported that there could be positive news, possibly by Thursday, on initial trials of another vaccine from the University of Oxford.

“The dollar looks like a good safe haven now because of worries about a return to corona virus lock-downs,” said Minori Uchida, head of global market research at MUFG Bank.

USD/CAD 4 Hour Chart:

Support: 1.3522 (S1), 1.3472 (S2), 13443 (S3).

Resistance: 1.3602 (R1), 1.3631 (R2), 1.3681 (R3).

Canada’s federal government is taking all the necessary steps for economic recovery in the country but the fear of second wave of corona virus has made the Investors to concentrate on the safe-haven asset – USD for the time being, we expect a bullish trend for USD/CAD.