USD/CAD set for a bounce back into 1.3300 as CAD pauses

• Stabilization in oil markets is seeing some walkback in USD/CAD, recovering from five-week lows.
• Plenty of high-impact data to come this week, but the first half sees oil pressured into the middle, providing a balancing effect for the Loonie.

USD/CAD is seeing fresh push towards the 1.3300 handle, lifting into 1.3285 as the Greenback seeks to reclaim ground against the Loonie, which has been getting a helping hand from recovering crude oil prices.

The US Dollar fell to a five-week low against the Loonie last week, touching into the 1.3185 region as crude oil costs saw a sharp recovery on OPEC+ production limits, but with crude prices beginning to balance out at their near-term price levels, the CAD is seeing some bounceback against the USD, and the Dollar-Loonie pairing is seeing a mild recovery for the new week, though the upside is likely to remain limited with plenty of high-impact data due in the latter week for both the CAD and the USD, but the pairing can expect to remain fairly constrained as energy markets keep prices where they are as investors await changes in demand.

USD/CAD Technical Levels