“¢ Bulls fail to capitalize on the overnight goodish up-move amid a subdued USD demand.
“¢ Oil struggles below the $61.00/barrel mark and undermines Loonie, lending some support.
The USD/CAD pair struggled to capitalize on the overnight goodish up-move and was seen oscillating in a narrow trading band, just above mid-1.3400s.
After Friday’s sharp intraday pullback, triggered by the upbeat Canadian jobs report, the pair managed to regain positive traction at the start of a new trading week and was being supported by the selloff in Oil prices, which tends to undermine demand for the commodity-linked currency.
With investors looking past reports of two Saudi oil tankers getting attacked off the United Arab Emirates coast on Sunday, escalating trade tensions, especially after China announced retaliatory tariffs on US goods, dampened demand for risk-sensitive commodities.
Adding to this, the US Energy Department’s press secretary, Shaylyn Hynes, downplayed the potential impact of the conflict in the Middle East on the oil market and said that the oil market is well-supplied, which exerted some additional pressure on Oil prices.
Meanwhile, the US Dollar reversed an early dip to multi-week lows and benefitted from the global flight to safety, which provided an additional boost and collaborated to the pair’s goodish intraday rally of around 70-pips – back closer to the key 1.3500 psychological mark.
The overnight uptick, however, lacked any strong follow-through, with a subdued USD/Oil price action failing to provide any meaningful impetus and leading to the pair’s range-bound price action through the early European trading session on Tuesday.
Technical levels to watch
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