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  • USD/CAD marks the first of three weekly gains during a two-day uptrend.
  • WTI retreats from a six-week high and drops the most in a week.
  • As cases rapidly double, pressure is placed on the medical system, and the new option encourages people to take risks.
  • Markets will be driven by Friday’s NFP, Canada’s trade report, and the US ISM Services PMI.

The USD/CAD price outlook is positive as the US dollar gains across the board amid Fed’s tightening concerns to combat rising inflation. As a result, the USD/CAD bulls aim to retaliate at the 1.2800 level during Thursday’s session in Europe.

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Despite that, the USD/CAD pair is enjoying signals linked to higher US Treasury yields and lower prices for WTI crude oil, Canada’s most important export.

A five-day uptrend saw the 10-year US bond yield spike by 2.3 basis points to 1.73%, bringing S&P 500 futures to a two-week low of 4675 after declining no less than 0.40%. The previous day, WTI crude fell 0.15% to $76.66 after climbing to its highest level since late November.

Fed officials’ heightened prejudice contributed to a rise in US Treasury yields the day before, which suggests an earlier rate hike and plans to address balance sheet normalization, according to the FOMC protocol.

Coronavirus fears have been fueling US bonds lately, suggesting a surge in daily infections and health system problems everywhere. Yet, despite an early lockdown in Quebec, Canada to combat viral infections, the number of cases is not decreasing.

However, the first of three weeks of gains could be pushed by firmer yields and lower oil prices. However, today’s Canadian international commodity trade will precede Friday’s US ISM Services PMI, which could entertain short-term buyers ahead of Friday’s employment report.

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USD/CAD price technical outlook: Aiming to crack 1.2800

usd/cad outlook

The USD/CAD outlook is bullish as the price has managed to surge beyond the key SMAs on the 4-hour chart. The price is now trying to break above the 1.2800 level, which is a stiff resistance. However, volume data is sufficient for the buyers to move towards new highs. The pair has marked a 60% average daily range so far which shows higher volatility for the day. The pair can further test 1.2850 ahead of 1.2900.

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