USD/CAD inter-markets: seems all set to reclaim 1.3300 handle

Haresh Menghani FXStreet

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.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3078

0% Bullish
100% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.3153

44% Bullish
44% Bearish
11% Sideways

Bias Neutral

1 Quarter

Avg Forecast 1.3236

55% Bullish
27% Bearish
18% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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