USD/CAD fails to sustain above 1.3200 mark
|- The USD gets a strong boost on the back of the post-ECB slump in the Euro.
- A sudden drop in Crude Oil prices undermined Loonie and remained supportive.
- The US bond yields slide further after US CPI and capped any further up-move.
The USD/CAD pair reversed early dip and climbed to fresh weekly tops, further beyond the 1.3200 handle during the early North-American session, albeit lacked follow-through.
A combination of supporting factors helped the pair to regain positive traction and turn higher for the second consecutive session on Thursday. A sudden pickup in the US Dollar demand - triggered the post-ECB slump in the shared currency - provided a minor lift to the major.
USD strength/tumbling Oil prices supportive
The strong USD bid tone seemed unaffected by a sharp intraday free fall in the US Treasury bond yields, which accelerated further following the release of Thursday's US consumer inflation figures, showing that the headline CPI unexpectedly eased to 1.7% yearly rate in August.
This coupled with a fresh leg of a downfall in Crude Oil prices, now down around 2.5% for the day and sliding further below $54.50/barrel, undermined demand for the commodity-linked currency - Loonie and further collaborated to the pair's goodish intraday up-move of around 40-45 pips.
The uptick, however, seemed to lack any strong follow-through, warranting caution before placing any aggressive bullish and positioning for any further near-term recovery move from six-week lows set earlier this week.
Technical levels to watch
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