USD/CAD edges back closer to 1.3300 handle, focus shifts to Canadian GDP
- Weaker oil prices undermined the loonie and helped the pair to regain some traction.
- A modest pickup in the USD demand remained supportive of the intraday uptick.
- Investors look forward to Canadian monthly GDP growth figures for a fresh impetus.
The USD/CAD pair edged higher during the early European session on Friday, with bulls making a fresh attempt to reclaim and build on the momentum beyond the 1.3300 handle.
A softer tone surrounding crude oil prices underpinned demand for the commodity-linked currency – loonie and was seen as one of the key factors lending some initial support to the major. Despite expectations that OPEC and its allies will extend the current supply cut agreement, oil prices edged lower amid doubts over the US-China “phase one” trade deal.
Apart from weaker oil prices, the latest leg of an uptick over the past couple of hours could further be attributed to a modest pickup in the US dollar demand. The USD uptick, however, seemed to lack any strong bullish conviction amid retreating US Treasury bond yields, which might keep a lid on any strong follow-through positive move for the major.
Market participants now look forward to Friday's important release of monthly Canadian GDP growth figures for a fresh impetus later during the early North-American session. This coupled with any trade-related headlines might further influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.
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.
