- USD/CAD is selling off again on Monday amid modest dollar weakness.
- The pullback in US bond yields and the risk boost are weighing on the safe-haven dollar.
- Falling oil prices could undermine the loonie and help limit further losses.
The pair USD/CAD attracts fresh selling on the first day of a new week and pulls back further from a near three-week high around the 1.2985 area touched on Friday. The intraday drop extends to the middle of the European session and drags the pair to a new daily low, around the 1.2870 zone in the last hour.
The US dollar struggles to ride the strong post-NFP move higher and lower on Monday, which turns out to be a key factor putting downward pressure on the USD/CAD pair. The pullback in US Treasury yields, coupled with a generally positive tone around equity markets, tempers the dollar’s relative safe-haven status. However, the decline looks muted, which warrants some caution before placing aggressive bearish bets.
The positive monthly US jobs report released on Friday raised bets for a further Fed rate hike at the September policy meeting. This should act as a tailwind for US bond yields and help revive demand for dollars. Oil prices, meanwhile, languished near a multi-month low, which should undermine the commodity-linked loonie and help limit any significant decline in the USD/CAD pair, at least for now.
In the absence of major economic releases, US bond yields and general market risk sentiment will play a critical role in dollar demand. Aside from this, traders will follow the oil price dynamics to take advantage of short-term opportunities around the USD/CAD pair. However, the focus will be on the release of US consumer inflation figures on Wednesday, which could provide a further directional boost to the pair.
Technical levels
USD/CAD
Panorama | |
---|---|
Last Price Today | 1.2852 |
Today’s Daily Change | -0.0085 |
Today’s Daily Change % | -0.66 |
Today’s Daily Opening | 1.2937 |
Trends | |
---|---|
20 Daily SMA | 1.2909 |
50 Daily SMA | 1.2864 |
100 Daily SMA | 1.2785 |
200 Daily SMA | 1.2736 |
levels | |
---|---|
Previous Daily High | 1.2985 |
Previous Daily Minimum | 1.2861 |
Previous Maximum Weekly | 1.2985 |
Previous Weekly Minimum | 1.2768 |
Monthly Prior Maximum | 1.3224 |
Previous Monthly Minimum | 1.2789 |
Daily Fibonacci 38.2% | 1.2938 |
Daily Fibonacci 61.8% | 1.2908 |
Daily Pivot Point S1 | 1,287 |
Daily Pivot Point S2 | 1.2803 |
Daily Pivot Point S3 | 1.2746 |
Daily Pivot Point R1 | 1.2994 |
Daily Pivot Point R2 | 1.3052 |
Daily Pivot Point R3 | 1.3119 |
Source: Fx Street
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