- Sustained USD selling bias dragged USD/CAD lower on the first day of the week.
- A modest pickup in the US bond yields extended some support to the greenback.
- Sliding oil prices undermined the loonie and helped limit deeper losses for the pair.
The USD/CAD pair remained depressed through the early European session and was last seen hovering near the 1.2460-65 region, just above one-month lows touched earlier this Monday.
The pair kicked off the new week on a downbeat note and extended last week's post-BoC sharp retracement slide from levels just above mid-1.2600s – the highest since March 10. This marked the second straight day of a negative move – also the third in the previous four – and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.
Investors seem convinced with the view that any spike in inflation is likely to be transitory and have been scaling back their expectations for an earlier than anticipated Fed lift-off. This, along with the underlying bullish tone in the financial markets, dragged the safe-haven USD to fresh multi-week lows and exerted some downward pressure on the USD/CAD pair.
That said, a combination of factors helped limit any further losses, at least for the time being. A modest uptick in the US Treasury bond yields extended some support to the USD. On the other hand, a fresh leg down in crude oil prices undermined the commodity-linked loonie and held bearish traders from placing aggressive bets around the USD/CAD pair.
Market participants now look forward to the US economic docket, featuring the release of Durable Goods Orders later during the early North American session. Apart from this, the US bond yields and the broader market risk sentiment might influence the USD. Traders will further take cues from oil price dynamics to grab some opportunities around the USD/CAD pair.
Technical levels to watch
|Today last price||1.2461|
|Today Daily Change||-0.0015|
|Today Daily Change %||-0.12|
|Today daily open||1.2476|
|Previous Daily High||1.251|
|Previous Daily Low||1.2461|
|Previous Weekly High||1.2654|
|Previous Weekly Low||1.246|
|Previous Monthly High||1.274|
|Previous Monthly Low||1.2365|
|Daily Fibonacci 38.2%||1.248|
|Daily Fibonacci 61.8%||1.2491|
|Daily Pivot Point S1||1.2455|
|Daily Pivot Point S2||1.2434|
|Daily Pivot Point S3||1.2407|
|Daily Pivot Point R1||1.2503|
|Daily Pivot Point R2||1.2531|
|Daily Pivot Point R3||1.2552|
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.