• The ongoing slide in oil prices weigh on Loonie and helped gain some traction.
• Subdued USD demand/holiday-thinned liquidity conditions seemed to cap gains.
The USD/CAD pair edged higher at the start of a new trading week and is currently placed at session tops, recovering a part of Friday’s intraday slide.
The pair extended its rejection slide from the key 1.3500 psychological mark and lost some additional ground on Friday, weighed down by a follow-through US Dollar retracement from two-year tops following the disappointing release of US durable goods orders data.
The USD bulls held on the defensive through the early European session on Monday amid growing bets for a Fed rate cut, albeit some renewed weakness in Crude Oil prices undermined demand for the commodity-linked currency – Loonie and provided a minor boost to the major.
In fact, WTI Crude Oil prices added to last week’s heavy losses – the biggest this year, and declined further amid concerns over any further deterioration in the US-China trade disputes and signs of a slowdown in the global economic growth.
The uptick, however, lacked any strong conviction as investors now seemed reluctant to place any aggressive bets amid absent relevant fundamental catalyst and relatively thin liquidity conditions on the back of holidays in the UK and US.
Technical levels to watch