- USD/CAD failed to capitalize on Friday’s early uptick to the 1.3625-30 supply zone.
- The USD remained on the defensive amid sliding US bond yields and capped gains.
- Weaker crude oil prices undermined the loonie and helped limit any meaningful slide.
The USD/CAD pair held on to its modest gains near the 1.3600 round-figure mark and had a rather muted reaction to the Canadian macro data.
According to the monthly jobs report published by Statistics Canada, the economy added around 953K jobs in June as compared to consensus estimates pointing to a reading of 700K. This marked a strong rebound from the previous month’s rise of 289.6K, albeit did little to provide any meaningful impetus to the USD/CAD pair.
A weaker tone around crude oil prices, down nearly 1.5% for the day, weighed on the commodity-linked currency – the loonie – and extended some support to the major. The negative factor, to a larger extent, was offset by a modest US dollar pullback from daily tops, which kept a lid on any strong gains for the USD/CAD pair.
Despite concerns about the ever-increasing coronavirus cases, the USD struggled to attract any safe-haven bids and remained on the defensive through the early North American session. The global flight to safety led to a fresh leg down in the US Treasury bond yields and seemed to undermine sentiment around the greenback.
From a technical perspective, bulls are likely to wait for a sustained move beyond the 1.3625-30 region before positioning for any further appreciating move. The pair might then accelerate the move towards reclaiming the 1.3700 mark. Meanwhile, the downside is likely to remain limited amid the prevalent risk-off mood.
Technical levels to watch
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