USD/CAD flirts with session tops, looks to build on momentum beyond 1.2100 mark
|- USD/CAD regained positive traction on Monday and was supported by a combination of factors.
- The USD found some support from a modest pickup in the US bond yields and a softer risk tone.
- Retreating crude oil prices undermined the loonie and remained supportive of the intraday uptick.
The USD/CAD pair refreshed daily tops heading into the European session, with bulls now looking to build on the momentum beyond the 1.2100 mark.
A combination of factors assisted the pair to regain positive traction on the first day of a new trading week and recover a major part of Friday's post-NFP retracement slide from over one week tops. As investors looked past the softer US monthly jobs report, the US dollar found some support from a modest uptick in the US Treasury bond yields. Apart from this, a softer tone around crude oil prices undermined the commodity-linked loonie and acted as a tailwind for the USD/CAD pair.
A little disappointment from the headline NFP print tempered expectations that the Fed will begin tapering its asset-purchase program sooner rather than later. That said, investors remain concerned about rising inflationary pressure and refrained from placing aggressive USD bearish bets. Hence, the focus will remain on the release of the latest US consumer inflation figures, which will be another piece of important macro data that would set the tone for the FOMC meeting on June 15-16.
On the other hand, the Canadian dollar was weighed down by a modest pullback in crude oil prices. This comes on the back of Friday's disappointing Canadian employment details, which extended some additional support to the USD/CAD pair. It, however, remains to be seen if bulls are able to capitalize on the move or continue with their struggle to make it through the 1.2135-40 region amid absent relevant market-moving economic releases on Monday, either from the US or Canada.
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.