“¢ A fresh leg of an upsurge in the US bond yields helped the USD to gain some traction.
“¢ Weaker oil prices undermine Loonie and remained supportive of intraday up-move.
“¢ Focus remains on this week’s FOMC decision and the closely watched US jobs report.
The USD/CAD pair maintained its bid tone through the early North-American session, albeit struggled to extend the momentum and remained capped below the key 1.3500 psychological mark.
Some renewed US Dollar strength helped the pair to regain positive traction at the start of a new trading week and extended some support to the major. The greenback got an additional boost in wake of a goodish pickup in the US Treasury bond yields following the release of March PCE report.
Data released on Monday showed that personal spending rose more than expected 0.9% m/m during the reported period, while personal income fell short of market expectations. Moreover, the inflation reading – core PCE price index, was in sync with Friday’s GDP report and did little to provide any meaningful impetus.
Meanwhile, a weaker tone around oil markets, with WTI crude oil now trading with a daily loss of around 0.80% further undermined demand for the commodity-linked currency – Loonie and remained supportive of the bid tone surrounding the pair/intraday positive move.
Moving ahead, the pair remains at the mercy of USD/oil price dynamics as the focus now shifts to this week’s other event/data risk – the latest FOMC monetary policy update on Wednesday and Friday’s release of the closely watched US monthly jobs report, popularly known as NFP.
Technical levels to watch
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