- A goodish pickup in the US bond yields underpinned the USD, though failed to provide any impetus.
- Bulls also shrugged off a mildly softer tone around Oil prices, which tend to undermine Loonie demand.
- Market participants now look forward to key US macroeconomic releases for some short-term impetus.
The USD/CAD pair extended its sideways consolidative price action on Friday and remained confined in a broader trading range held over the past one week or so.
Despite the prevalent bullish sentiment surrounding the US Dollar, backed by a goodish pickup in the US Treasury bond yields, the pair continued with its struggle to attract any meaningful buying interest and remained well below the very important 200-day DMA barrier near the 1.3300 round-figure mark.
Stronger USD/weaker Oil failed to impress bulls
The market reaction to the ongoing political drama in the United States, related to an impeachment inquiry against President Donald Trump and the subsequent release of the full complaint letter from the ‘whistleblower’, had been rather muted, though failed to impress bullish traders.
Even a subdued action around Crude Oil prices, which tend to influence demand for the commodity-linked currency – Loonie, did little to provide any impetus to the major. Oil prices remained depressed in the wake of reports that Saudi Arabia’s output has fully recovered from the recent attacks on its energy facilities.
Given that bulls haven’t been able to capitalize on a combination of supporting factors, it will be prudent to wait for a sustained move beyond the mentioned handle before positioning for any further near-term appreciating move back towards monthly swing highs – around the 1.3380-85 region.
Moving ahead, Friday’s US economic docket – highlighting the release of the closely watched durable goods orders and core PCE price Index – will now be looked upon to grab some short-term trading opportunities on the last day of the week.
Technical levels to watch
Share
