- USD/CAD once again finds some support near the 1.3030-25 region.
- Some follow-through USD buying remained supportive of the move.
- Bulls largely shrug off a positive tone surrounding crude oil prices.
The USD/CAD pair rebounded around 20-25 pips from the early European session lows and refreshed session tops, around the 1.3055-60 region in the last hour.
The pair once again managed to find decent support near the 1.3030-25 strong horizontal zone (weekly lows) and has now moved into the positive territory amid a goodish pickup in the US dollar demand.
USD/CAD gains traction amid renewed USD buying
Following a brief consolidation through the early European session, the greenback regained some traction on Friday and was being supported by a positive tone surrounding the US Treasury bond yields.
The prevalent risk-on mood – amid the latest optimism over the long-awaited US-China phase one trade deal – allowed the US bond yields to add to the overnight gains led by mostly upbeat US macro data.
The intraday positive move back above mid-1.3000s seemed rather unaffected by a modest uptick in crude oil prices, which tend to underpin demand for the dollar-denominated commodity – loonie.
On the economic data front, Friday’s mixed US housing market data – Building Permits and Housing Starts – did little to provide any meaningful impetus to the major and passed largely unnoticed.
Friday’s US economic docket also features the release of Prelim UoM Consumer Sentiment, which will now be looked upon for some short-term trading opportunities on the last day of the week.
Technical levels to watch