• USD/CAD buying seen at 1.3390
  • Oil rally helps CAD
  • Global uncertainties underpin the dollar

USD/CAD is trading sideways in the European session and is staying below 1.3400.

The pair was at 1.3390 recently as bids kept coming near the 1.336 levels, during the Asian session.

The uptick in the pair is in line with the dollar demand seen across the globe after the better than expected US Non-Farm Payrolls data. Jobs in July came in at 1.8 million against 1.6 million expected.

But, the dollar demand was offset by the strength in the Canadian dollar due to the rally in WTI crude oil prices. The US oil traded up by one Percent to touch 41.5 dollars – thanks to Saudi Aramco CEO’s upbeat projection of oil demand amid the easing of coronavirus lockdown world over.

As there will not be any significant data flow from the US and Canada, fiscal stimulus talks, risk trends and dollar dynamics will dictate the price action in the pair.