USD/CAD clings to modest gains, comfortably above mid-1.3000s
- Recovering US bond yields/upbeat US data helped the USD to gain some traction.
- Positive Oil prices underpinned Loonie and kept a lid on any meaningful up-move.
The USD/CAD pair refreshed session tops, around the 1.3065-70 region during the early North-American session, albeit seemed to lack any strong follow-through.
Against the backdrop of an intraday bounce in the US Treasury bond yields, the US Dollar got a minor lift following the release of stronger-than-expected Philly Fed manufacturing index, which jumped to 21.8 in July as compared to a 5.0 rise expected and 0.3 previous.
Meanwhile, the release of Canadian ADP report, showing an additional of 30.4K non-farm industry jobs, did little to influence the price action, albeit a positive tone around Crude Oil prices underpinned the commodity-linked currency - Loonie and capped gains.
Oil snapped three consecutive days of losing streak and remained supported by escalating geopolitical tensions in the Middle East, especially after Iran reportedly said that it had seized a foreign tanker with 12 crew members accused of smuggling oil.
It would now be interesting to see if the pair is able to capitalize on the uptick or meets with some fresh supply at higher levels amid rising odds for an aggressive monetary easing by the Fed when it announces its policy decision following a two-day meeting on July 30-31.
In the meantime, a scheduled speech by the New York Fed President John Williams might influence the USD price dynamics and produce some short-term trading opportunities later during the US session.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
