USD/CAD pushes up to mid 1.3400s as stronger USD limits losses from Oil price rebound
|- USD/CAD attempts to capitalize on a modest bullish gap opening on Monday.
- An uptick in Crude Oil prices underpins the Loonie and acts as a headwind.
- A combination of factors continues to benefit the USD and lends support.
The USD/CAD pair pushes higher to the mid 1.3400s during the European session on Monday as follow-through buying after Friday's NonFarm Payroll job's suprise continues to fuel demand for the US Dollar.
Crude Oil prices edged higher overnight, initially recovering a part of Friday's slide to over a one-month low, but these have faded as the day progresses.
The USD Index, which tracks the Greenback against a basket of currencies, builds on Friday's solid recovery from a nine-month low and continues to draw support from a combination of factors. Investors are aclimatizing to the new view that the upbeat US jobs data could allow the Fed to stick to its hawkish stance and keep raising rates.
These expectations are pushing the US Treasury bond yields higher, which, along with the risk-off environment, is seen benefitting the safe-haven Greenback. This, in turn, suggests that the path of least resistance for the USD/CAD pair is to the upside and any meaningful slide is likely to get bought into.
There isn't any major market-moving economic data due for release from the US on Monday, leaving the USD at the mercy of the US bond yields and the broader market risk sentiment. Apart from this, traders will take cues from Oil price dynamics to grab short-term opportunities around the USD/CAD pair.
Technical levels to watch
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