“¢ The USD remained on the defensive and kept a lid on the early uptick.
“¢ Recovering oil prices underpin Loonie and add to the selling bias.
“¢ Traders now eye Canadian GDP/US data for some short-term impetus.
The USD/CAD pair quickly retreated around 25-pips during the early European session and is currently placed at the lower end of its daily trading range, below mid-1.3400s.
The pair failed to capitalize on its intraday positive move and once again – for the second straight session, met with some fresh supply near the 1.3480 region amid some renewed US Dollar selling. Despite the fact that the US personal spending recorded its strongest growth in nearly a decade, the greenback remained on the defensive amid expectations that the Fed will stick to its cautious stance in wake of steadily cooling inflation.
Meanwhile, investors looked past the US President Donald Trump’s demand to the OPEC cartel to raise output/lower oil prices and a follow-through recovery in crude oil further underpinned the commodity-linked currency – Loonie and collaborated to the pair’s intraday slide of around 30-pips, though the downside is likely to remain cushioned ahead of this week’s key event/data risks.
Today’s economic docket highlights the monthly Canadian GDP report, which coupled with the release of Chicago PMI, the Conference Board’s consumer confidence index and pending home sales data from the US will be looked upon for some short-term trading impetus during the early North-American session and ahead of the BoC Governor Stephen Poloz’s scheduled speech later in the day.
The key focus, however, will be on Wednesday’s FOMC decision and the closely watched US monthly jobs report on Friday – popularly known as NFP, which might play an important role in determining the next leg of a directional move for the major.
Technical levels to watch
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