USD/CAD consolidates in a range, around 1.3300 handle
|- The USD remained well supported by positive US bond yields, trade developments.
- A pickup in oil prices underpinned the loonie and kept a lid on any strong gains.
The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Monday.
A combination of diverging forces failed to provide any meaningful impetus or assist the pair to build on Friday's goodish intraday positive move of around 45 pips and led to a subdued/range-bound price action on the first day of a new trading week.
Bulls await a fresh catalyst
The US dollar remained well supported by Friday's mostly upbeat US economic data and a modest pickup in the US Treasury bond yields. This coupled with some renewed hopes of a possible US-China trade deal extended some support to the major.
In the latest trade-related developments, the US President Donald Trump said on Friday that a deal with China was “potentially very close” and further indicated that he might not sign a bill passed by the Congress that supports Hong Kong.
The positive factor, to a larger extent, was negated by a mildly positive tone surrounding oil prices, which underpinned demand for the commodity-linked currency – loonie and kept a lid on any strong positive move for the major, at least for the time being.
Even from a technical perspective, the pair last week failed near a 5-1/2-month-old descending trend-line resistance, albeit has managed to hold its neck above the very important 200-day SMA, warranting some caution before placing any aggressive directional bets.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.