The USD/CAD gained traction for a second consecutive session due to multiple factors. .
The USD advanced underpinned by substantial selling in European currencies.
Sliding oil prices undermined the Canadian Dollar and remained supportive.
The USD/CAD trades mildly higher in early trade and at the time of writing was trading around the 1.3100 mark.
The pair ticked northwards thanks in part to US Dollar strength and a steep drop in crude oil prices, .
With Friday’s mixed US monthly jobs report in the rear view mirror, the USD resumed its rally supported by some heavy selling of European currencies.and rising US – Sino tensions.
In contrast, the Canadian dollar was weak owing to sliding oil prices, as crude tumbled -2.5%, .Rising covid cases in the US is raising concerns over demand growth, pulling oil to $39.00 per barrel, its lowest level for two months.
Despite supportive forces USD/CAD struggled to push beyond a two-month-old descending trend-line It would be prudent to wait for some strong follow-through buying before traders start positioning for any upward move, as the focus shifts to the latest BoC monetary policy decision on Wednesday.
In the meantime, the USD/CAD pair seems more likely to remain range bound given that absence of economic releases.
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