“¢ A slight deterioration in risk sentiment benefits the USD’s safe-haven status.
“¢ Positive Oil prices do little to underpin Loonie or hinder the intraday up-move.
“¢ Traders now eye US data for some impetus ahead of Wednesday’s BoC decision.
The USD/CAD pair finally broke out of its Asian session consolidative trading range and spiked to fresh session tops, further beyond mid-1.3400s in the last hour.
After a rather muted trading action at the start of a new trading week, the pair regained some positive traction on Tuesday and was being supported by some renewed US Dollar buying interest.
Meanwhile, the latest leg of a sudden pickup in the last hour or so could further be attributed to a slight deterioration in the global risk sentiment, which was seen benefitting the greenback’s relative safe-haven status against its Canadian counterpart.
The US-China trade tensions escalated further after the US President Donald Trump said that he was not ready to make a deal with China, which was eventually seen denting investors’ appetite for perceived riskier assets.
The intraday positive move seemed rather unaffected by a goodish rebound in Crude Oil prices, which tends to boost demand for the commodity-linked currency – Loonie, albeit might act as the only factor keeping a lid on any runaway rally for the major.
Moving ahead, today’s US economic docket – highlighting the release of Conference Board’s Consumer Confidence Index, will now be looked upon for some impetus. The key focus, however, will remain on the latest BoC monetary policy update, due to be announced on Wednesday.
Technical levels to watch