USD/CAD TRADES WITH MODEST LOSSES AROUND MID-1.3500S AMID REBOUNDING OIL PRICES
- USD/CAD kicks off the new week on a softer note, though it lacks follow-through selling.
- An uptick in Oil prices underpins the Loonie and exerts downward pressure on the major.
- A modest USD strength might hold back bears from placing aggressive bets and limit losses.
The USD/CAD pair struggles to capitalize on Friday's strong intraday rally of over 100 pips and trades with a mild negative bias around mid-1.3500s during the Asian session on Monday. The downtick is sponsored by a modest rise in Crude Oil prices, though a combination of factors should help limit deeper losses.
Crude Oil prices move away from the lowest level since June 2023 touched on Friday amid the forecast of a potential hurricane approaching the northwestern US Gulf Coast, which accounts for 60% of US refining capacity. This, in turn, is seen underpinning the commodity-linked Loonie and exerting some downward pressure on the USD/CAD pair. That said, a weaker Canadian jobs report released on Friday raised hopes for additional interest rate cuts by the Bank of Canada (BoC) and should cap gains for the domestic currency.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.