- A modest pickup in the USD demand helped regain some traction.
- Weaker oil prices undermined the Loonie and remained supportive.
The USD/CAD pair built on its steady intraday move up and is currently placed at the top end of its daily trading range, around the 1.3225 region.
A combination of supportive factors helped the pair to regain some positive traction on the first day of a new trading week and recover a part of the previous session’s sharp intraday slide to one-month lows – touched in reaction to upbeat Canadian employment details.
Weaker Oil/pickup in the USD demand underpinned
However, a slight deterioration in the global risk sentiment, despite a positive outcome from the much-hyped US-China trade talks, benefitted the US Dollar’s relative safe-haven status against its Canadian counterpart and extended some support to the major.
This coupled with a sharp intraday slide in Crude Oil prices, on lingering doubts about the outlook for the world economy, further undermined demand for the commodity-linked currency – Loonie and remained supportive of the bid tone surrounding the pair.
It, however, remains to be seen if the pair is able to capitalize on the positive momentum or run into some fresh supply at higher levels amid firming market expectations that the Fed will cut interest rates further at its upcoming monetary policy meeting on October 29-30.
Both the US and Canadian markets will remain closed on Monday in observance of Columbus Day and Thanksgiving Day, respectively. Hence, absent relevant market-moving economic data on Monday leaves the pair at the mercy of USD/Oil price dynamics.
Technical levels to watch
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