USD/CAD edged lower on Monday and snapped four days of the winning streak. A turnaround in the risk sentiment prompted some profit-taking around the USD. A modest uptick in oil prices underpinned the loonie and contributed to the slide. The USD/CAD pair edged lower through the mid-European session and dropped to fresh daily lows, closer to the 1.2400 round-figure mark in the last hour. The pair struggled to capitalize on last week’s strong bullish momentum and witnessed a modest pullback from near two-month tops, around the 1.2485 region touched earlier this Monday. This marked the first day of a negative move in the previous five and forced the USD/CAD pair to erased a part of its gains recorded on Friday. As investors digested a sudden hawkish turn by the Fed, the US dollar witnessed some profit-taking and moved away from two-and-half-month tops. A sharp turnaround in the global risk sentiment – as depicted by a solid bounce in the equity markets – weighed on the safe-haven USD and exerted some downward pressure on the USD/CAD pair. Apart from this, a generally positive tone around crude oil prices undermined the commodity-linked loonie and further contributed to the offered tone surrounding the USD/CAD pair. Oil prices remained supported by expectations for a strong pickup in fuel demand and a pause in talks to revive the Iran nuclear deal. Despite the negative factor, the downside is likely to remain cushioned, at least for the time being, warranting some caution for bearish traders. The Fed’s signal that it might raise interest rates at a much faster pace than anticipated previously should continue to act as a tailwind for the greenback and extended some support to the USD/CAD pair. There isn’t any major market-moving economic data due for release on Monday, either from the US or Canada. Hence, the broader market risk sentiment will play a key role in influencing the USD. Apart from this, oil price dynamics will be looked upon for some short-term trading opportunities around the USD/CAD pair. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Price Forecast: China Attacks But Bullish Upside Near $30k Gary McFarlane 1 year USD/CAD edged lower on Monday and snapped four days of the winning streak. A turnaround in the risk sentiment prompted some profit-taking around the USD. A modest uptick in oil prices underpinned the loonie and contributed to the slide. The USD/CAD pair edged lower through the mid-European session and dropped to fresh daily lows, closer to the 1.2400 round-figure mark in the last hour. The pair struggled to capitalize on last week's strong bullish momentum and witnessed a modest pullback from near two-month tops, around the 1.2485 region touched earlier this Monday. This marked the first day of a negative… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
