USD/CAD sits near multi-week tops, comfortably above 1.3200 handle
- Bulls took a breather after Friday’s softer Canadian jobs-led strong move up.
- A subdued USD demand capped gains; weaker Oil prices remain supportive.
The USD/CAD pair was seen oscillating in a narrow trading band through the early European session on Monday and consolidated Friday's goodish up-move to near four-week tops.
The pair on Friday got the required momentum and finally broke through the 100-day SMA barrier near the 1.3200 handle on Friday after data released from Canada showed that the number of employed people unexpectedly declined by 1.8K in October.
Traders turn cautious amid US/Canadian bank holiday
Adding to the softer Canadian jobs report, the US Dollar bullish run to multi-week tops, further underpinned by the recent upsurge in the US Treasury bond yields, provided an additional boost and lifted the pair to the 1.3235-40 region – its highest level since mid-October.
Bulls took some breather at the start of a new trading week amid a subdued USD price action. However, some follow-through weakness in Crude Oil prices continued weighing on the commodity-linked currency – Loonie and helped limit the downside.
Meanwhile, investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines amid bank holidays in the US and Canada, which might further lead to a subdued/range-bound price action through the first day of a new trading week.
Moving ahead, this week's other US economic releases, including the latest consumer inflation figures and monthly retail sales data, along with the Fed Chair Jerome Powell's two-day testimony on Wednesday and Thursday will now be looked upon for a fresh directional impetus.
Technical levels to watch