- The USD remains supported by a follow-through uptick in the US bond yields.
- A subdued action around Crude Oil prices does little to influence the Loonie.
- Traders now eye US retail sales and Powell’s speech for some meaningful impetus.
The USD/CAD pair traded with a mild positive bias for the second consecutive session and built on the previous session’s modest bounce from closer to yearly lows.
The US Dollar found some traction on Monday following the release of the Empire State manufacturing index, showing that business activity improved sharply in July and posted its biggest increase in more than two years.
Adding to this, a follow-through pickup in the US Treasury bond yields helped the greenback to preserve the overnight gains and continued lending some support through the early European session on Tuesday.
Meanwhile, a subdued action around Crude Oil prices – consolidating the overnight pullback from multi-week tops, did little to influence demand for the commodity-linked currency – Loonie or provide any impetus.
With the USD price dynamics turning out to be an exclusive driver of the pair’s uptick, market participants now look forward to the release of the US monthly retail sales figures, due later during the early North-American session.
This will be followed by speeches by several FOMC members – including the Fed Chair Jerome Powell, which might further contribute towards producing some meaningful short-term trading opportunities on Tuesday.
Technical levels to watch