•  A goodish pickup in the US bond yields offset subdued USD demand.
   •  Weaker oil prices did little to support the commodity-linked Loonie.

The USD/CAD pair consolidated Friday's slump to 1-1/2 week lows and was seen oscillating in a range just above the 1.2800 handle. 

The US Dollar continues to be weighed down by the latest US monthly jobs report, showing an addition of 313K new jobs but was largely offset by disappointing average hourly earnings. 

The negative factor, to some extent, was negated by a goodish pickup in the US Treasury bond yields. This coupled with a subdued action around crude oil prices did little to lend any support to the commodity-linked currency - Loonie and helped the pair to find some support near the 1.2800 handle.

Currently hovering around the 1.2810-15 region, the pair lacked any firm directional bias and now seemed to await for some fresh catalyst. In absence of any major market-moving economic data, the USD/oil price dynamics could play an important role in determining the pair's momentum on the first trading day of the week. 

Moving ahead, this week's important US macro releases, including the latest consumer inflation figures and monthly retail sales data, would now be looked upon for some fresh meaningful impetus.

Technical levels to watch

Recovery attempts beyond 1.2825 level might now confront some fresh supply near the 1.2860 horizontal level, above which the pair is likely to move back towards reclaiming the 1.2900 handle. 

On the flip side, sustained weakness below the 1.2800 round figure mark now seems to pave the way for an extension of the pair's corrective slide towards 1.2760 horizontal support en-route the 1.2700 handle.

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

When is the RBNZ and how it could affect NZD/USD?

When is the RBNZ and how it could affect NZD/USD?

NZD/USD remains pressured towards 0.6300 during the three-day downtrend, down 0.15% intraday at 0.6335 by the press time, as Kiwi buyers brace for the 0.50% rate hike amid a sluggish Asian session on Wednesday.


AUD/USD struggles above 0.7000 as traders await Aussie Wage Price Index, FOMC Minutes

AUD/USD struggles above 0.7000 as traders await Aussie Wage Price Index, FOMC Minutes

AUD/USD portrays the market’s anxiety as it seesaws around 0.7020 ahead of the key Australia wage price data and the FOMC meeting minutes on early Wednesday in Asia. The risk barometer pair dropped during the last two days amid recession.


Gold stays pressured towards $1,755 ahead of Fed Minutes

Gold stays pressured towards $1,755 ahead of Fed Minutes

Gold price prints a three-day downtrend as it grinds lower around $1,775 during the initial hours of Wednesday’s Asian session. In doing so, the precious metal fades the late Tuesday’s bounce off $1,772 as traders turn cautious ahead of today’s key FOMC meeting minutes.

Gold News

Solana: How high can the X-wave rally?

Solana: How high can the X-wave rally?

Solana price has fallen into a supportive level on the Relative Strength Index on larger time frames. Solana price could rally an additional 80% under conservative macro conditions. Invalidation of the uptrend scenario is a breach of the low at $25.78.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!