- USD/CAD failed to capitalize on last week’s bounce from the 1.40 round-figure mark.
- Some follow-through USD selling on Monday exerted some fresh pressure on the pair.
- The downfall seemed rather unaffected by falling crude oil prices, down around 14%.
The USD/CAD pair edged lower through the early European session and is currently placed near the lower end of its daily trading range, around the 1.4040 region.
The pair failed to capitalize on last week’s attempted recovery from the key 1.40 psychological mark, instead met with some fresh supply on the first day of a new trading week amid the prevalent US dollar selling bias.
The greenback extended the previous session’s modest pullback from 2-1/2 week tops and was further pressured by some follow-through recovery in the global risk sentiment, as depicted by a positive mood around the equity markets.
The global risk sentiment remained well supported by hopes for the reopening of the US economy, though uncertainty over the severity of the economic fallout from the coronavirus pandemic might keep a lid on the optimistic mood.
Meanwhile, the intraday bearish pressure seemed rather unaffected by a fresh leg down in crude oil prices, now down around 13.5% for the day, which tends to undermine demand for the commodity-linked currency – the loonie.
Oil prices failed to capitalize on last week’s strong recovery, instead witnessed some fresh selling on Monday amid concerns that production cuts might not be enough to catch up with the collapse in demand caused by the virus outbreak.
It will now be interesting to see if the pair is able to attract any buying interest at lower levels or slides back to challenge the 1.40 mark amid absent relevant market-moving economic releases, either from the US or Canada.
Technical levels to watch
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