USD/CAD rallies to multi-day tops, further beyond 1.4200 mark
|- USD/CAD gains traction for the second straight session amid some follow-through USD strength.
- Recovering oil prices did little to lend any support to the loonie or stall the pair’s positive move.
- Investors now look forward to important Canadian/US macro data for some meaningful impetus.
The USD/CAD pair finally broke out of its daily trading range and climbed to multi-day tops, further beyond the 1.4200 mark during the early European session.
The pair added to the previous day's strong gains and gained some follow-through traction for the second consecutive session on Tuesday amid the prevailing buying interest surrounding the US dollar.
A goodish pickup in the US Treasury bond yields – supported by a further improvement in the global risk sentiment – underpinned the USD demand and seemed to be a key factor driving the pair higher.
Against the backdrop of the Fed's unlimited QE and a massive $2.2 trillion US economic stimulus package, a strong rebound in China's manufacturing activity in March boosted investors’ confidence on Tuesday.
The risk-on mood allowed crude oil prices to stage a solid recovery from 18-year lows, albeit did little to lend any support to the commodity-linked currency – the loonie or stall the pair's intraday positive move.
It will now be interesting to see if the pair is able to capitalize on the move or traders opt to lighten their bullish positions ahead of Tuesday's important macro releases, both from the US and Canada.
Tuesday's economic docket highlights the release of the monthly Canadian GDP data for January and the Conference Board's Consumer Confidence Index from the US, which might provide a fresh impetus.
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.