“¢ The USD managed to hold steady despite a slump in the US bond yields.
“¢ The ongoing slide in oil prices undermine Loonie and remained supportive.
“¢ The market focus remains glued to the latest BoC monetary policy update.
The greenback stood tall against its Canadian counterpart and pushed the USD/CAD pair further beyond the key 1.3500 psychological mark, or fresh multi-month tops in the last hour.
The pair built on last week’s goodish bounce from multi-week lows and added to the overnight strong gains, with a combination of supporting factors fueling the positive momentum for the third consecutive session on Wednesday.
Despite the recent slump in the US Treasury bond yields, lingering concerns about a further escalation in trade disputes between the world’s two largest economies continued benefitting the US Dollar’s relative safe-haven status.
This coupled with a follow-through weakness in Crude Oil prices, now down nearly 2% for the day, further undermined demand for the commodity-linked currency – Loonie and remained supportive of the up-move.
In fact, WTI Crude Oil tumbled to $58.00/barrel mark on Wednesday amid fears of a prolonged US-China trade war and gloomy global growth outlook, which could negatively affect demand for the commodity.
The up-move to the highest level since early-Jan. could further be attributed to some repositioning trade ahead of the key event risk – the BoC monetary policy update, scheduled to be announced later during the early North-American session.
Hence, it would be prudent to wait for a subsequent up-move to see if the up-move marks a fresh bullish break-out or once again fizzles out at higher levels amid absent relevant market moving releases from the US.
Technical levels to watch
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