USD/CAD inter-markets: seems all set to reclaim 1.3300 handle
|The greenback continued gaining traction on Friday and is helping the USD/CAD pair to extend its bullish momentum for the third straight session to a six-day high level around mid-1.3200s.
The pair's latest leg of up-move has been primarily driven by broad based greenback strength, as measured by the overall US Dollar Index, primarily led by an intense selling pressure around the EUR/USD major after ECB monetary policy decision. Adding to this, hawkish comments from Federal Reserve New York President William Dudley revised hopes of an eventual Fed rate-hike action by the end of this year and supporting strong bid tone around the greenback. Market expectations are being reaffirmed by a minor dip in US 10-year Treasury bond yields.
This coupled with profit-taking slide in WTI crude oil prices was seen weighing on the commodity-linked currency - loonie and was supportive of the pair's upward trajectory. However, a minor recovery in oil prices halted further up-move and has led to a profit taking move from weekly highs. Nevertheless, the pair is still set to reverse all of previous week's losses and end the current trading week on a bullish note.
With all the intrinsic supporting the ongoing bullish traction for the pair, any further weakness in oil prices would trigger a fresh bout of appreciating move for the major and pave way for continuation of the pair's near-term upward trajectory towards reclaiming 1.3300 handle.
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