USD/CAD jumps back closer to session tops amid fall in oil prices

   “¢   The USD failed to gain any respite from the recent selling after in-line CPI figures.
   “¢   A sudden fall in oil prices undermined Loonie and triggered a short-covering move.

The USD/CAD pair reversed an early dip, back closer to one-month lows, and jumped to the top end of its daily trading range.

The pair once again managed to find decent support ahead of 100-day SMA and has now rallied over 50-pips from the mid-European session lows, around the 1.3185-80 region.  

The up-move seemed rather unaffected from persistent selling around the US Dollar, which failed to gain any respite from today’s release of mostly in line US consumer inflation figures.

Meanwhile, a sudden fall in crude oil prices, which tend to undermine demand for the commodity-linked currency – Loonie seemed to be the only factor prompting some aggressive short-covering move.  

It, however, remains to be seen if the pair is able to build on the intraday goodish rebound or the up-move is seen as a selling opportunity amid growing speculation over a Fed rate hike pause in 2019.

Technical levels to watch