USD/CAD bounces above 1.38 as falling oil prices outweigh Fed shock cut amid coronavirus crisis

USD/CAD is trading around 1.3830, higher on the day. The US Federal Reserve has announced a surprising 100 basis-rate cut, slashing the borrowing cost to 0%. It is the second unscheduled slash in less than two weeks. 

However, while the dollar is weakening across the board, oil prices are falling on fears that lower demand and a price war between Saudi Arabia and Russia will push petrol prices lower. Therefore, the Canadian dollar is struggling to take advantage of the greenback's weakness. 

The Bank of Canada also cut rates by an additional 50bp late on Friday, in a hastily announced press conference alongside finance minister Morneau.