USD/CAD holds gains above 1.2600 amid weaker USD and WTI prices
|- USD/CAD remains supported above 1.2600 amid risk-on mood.
- WTI-price weakness and subdued USD keeps the range play intact.
- Further upside remains at the mercy of the US data, Powell’s speech.
USD/CAD is trading on the front foot above 1.2600, consolidating the two-day uptrend to five-day highs of 1.2634.
The pause in the USD/CAD advance could be attributed to the subdued trading seen in the US dollar against its main peers so far this Thursday. The greenback has preserved the American rebound, although lacks follow-through bias ahead of the Fed Chair Jerome Powell’s speech at the IMF Spring event later today.
Meanwhile, the bearish sentiment around WTI prices weighs on the resource-linked Canadian dollar, in turn, supporting the upside in the spot. Oil prices remain undermined by a hefty build in the US gasoline inventories while mixed Asian equities also add to the weight on the higher-yielding oil.
On Wednesday, dovish FOMC minutes, uncertainty over President Joe Biden’s huge infrastructure bill and rising Treasury yields spooked investors, as they scurried for safety in the US currency.
This Thursday, markets look forward to the US weekly jobless claims and Powell’s appearance for fresh near-term trading opportunities.
USD/CAD: Technical levels
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.