“¢ Surging oil prices underpin Loonie and prompt some fresh selling.
“¢ A modest USD pullback from multi-week tops adds to the pressure.
“¢ The downside remains limited amid holiday-thinned liquidity conditions.
The USD/CAD pair came under some renewed selling pressure at the start of a new trading week, albeit has managed to find some support ahead of mid-1.3300s.
The pair failed to capitalize on last week’s goodish up-move and continued with its struggle to sustained/build on the momentum further beyond the 1.3400 round figure mark amid a fresh leg of an upsurge in crude oil prices.
Oil prices rallied over 2% on Monday on reports that the US is set to announce ending Iran sanction waivers, which provided a strong boost to the commodity-linked currency – Loonie and exerted downward pressure on the major.
This coupled with a modest US Dollar pullback from multi-week tops, with bulls trying to defend the 97.00 round figure mark, further collaborated to the pair’s weaker tone through the Asian session on Monday.
The downside, however, remained cushioned as investors still seemed reluctant to place any aggressive bets amid holiday-thinned liquidity conditions on the back of Easter Monday holiday in the European markets.
Moving ahead, today’s relatively lighter US economic docket, highlighting the only release of existing home sales data, will now be looked upon for some short-term trading impetus later during the early North-American session.
Technical levels to watch
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