- USD/CAD added to last week’s post-BoC strong positive momentum.
- Weaker oil prices undermined the loonie and remained supportive.
The USD/CAD pair gained some follow-through traction on the first day of a new trading week and jumped to over one-month tops, around the 1.3180 region in the last hour.
The pair built on last week's post-BoC breakout momentum and scaled higher for the second consecutive session on Monday – also marking its fourth day of a positive move in the previous five.
A sharp fall in crude oil prices – amid concerns over the outbreak of the coronavirus – undermined demand for the commodity-linked currency – the loonie – and drove the pair higher on Monday.
USD/CAD supported by sliding oil prices
On the other hand, the US dollar remained supported by Friday's data, showing that the Services PMI rose to the highest level since last March, and reviving demand for perceived safe-haven currencies.
Meanwhile, the anti-risk flow led to a slump in the US Treasury bond yields, which might hold the USD bulls from placing any aggressive bets and eventually keep a lid on any runaway rally for the major.
Hence, it will now be interesting to see if the pair is able to capitalize on the momentum or bulls opt to lighten their positions at higher levels amid absent relevant market-moving economic releases on Monday.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD extends recovery gains to near 1.3250, as BoE looms
GBP/USD extends the recovery to near 1.3200 in European trading on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD advances to 1.1150, focus shifts to ECB-speak
EUR/USD is well-bid near 1.1150 in the European session on Thursday. The pair is underpinned by the renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness
Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.