USD/CAD regained positive traction on the first day of a new trading week.
Resurgent USD demand, a slump in oil prices remained supportive of the move.
The USD/CAD pair climbed to near two-week tops during the early European session on Monday, with bulls now eyeing a move towards reclaiming the 1.3300 mark.
A combination of factors – including some renewed US dollar buying and weaker oil prices – assisted the pair to regain some positive traction on the first day of a new trading week and build on the previous session’s attempted bounce from the 1.3200 round-figure mark, or three-week lows.
USD/CAD supported by a combination of factors
Market concerns over deepening economic fallout from the coronavirus outbreak were further fueled by reports indicating a rise in the number of confirmed cases in Italy. This eventually triggered a fresh wave of the global risk-aversion trade and benefitted the greenback’s perceived safe-haven status.
Apart from resurgent USD demand, an intraday slump in crude oil prices, now down over 3.5% for the day, weighed heavily on the commodity-linked currency – the loonie – and further collaborated to the pair’s goodish intraday positive move to the highest level since February 11.
There isn’t any major market-moving economic data due for release, either from the US or Canada. Hence, the broader market risk sentiment might continue to influence the USD demand and drive oil prices, which might eventually contribute towards producing some short-term trading opportunities.
Technical levels to watch