“¢ The USD remains on the defensive amid the ongoing slump in the US bond yields.
“¢ A solid bounce in Crude Oil prices underpinned Loonie and added to the selling bias.
“¢ Monday’s release of the US ISM manufacturing PMI eyed for some trading impetus.
The USD/CAD pair held on to its weaker tone through the mid-European session and is currently placed at the lower end of its daily trading range, just below the key 1.3500 psychological mark.
The US Dollar weakened to near one-week lows in wake of the ongoing slump in the US Treasury bond yields. In fact, the benchmark 10-year US government bond yield dropped to its lowest since September 2017 amid concerns of a sharp slowdown in global growth and kept the USD bulls on the defensive at the start of a new trading week.
This coupled with a solid rebound in Crude Oil prices, now up over 2.0% for the day, underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s follow-through pullback from near five-month tops, set on Friday in reaction to the US President Donald Trump’s surprise move to impose tariffs on Mexican goods.
Despite the downfall, the pair has managed to hold its neck above the 1.3480-85 horizontal support – marking the lower end of a broader trading range held over the past three-trading session. Hence, it would prudent to wait for a follow-through weakness below the mentioned support before positioning for any further depreciating move.
Monday’s US economic docket highlights the release of ISM manufacturing PMI, which might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.
Technical levels to watch
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