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USD/CAD trades with modest losses, just below 1.3300 mark

  • USD/CAD edges lower and retreats further from two-month tops.
  • A subdued USD demand weighed, weaker oil prices lend support.

The USD/CAD pair traded with a mild negative bias on Monday and is currently placed near the lower end of its daily trading range, just below the 1.3300 round-figure mark.

The pair edged lower on the first day of a new trading week and retreated further from two-month tops set on Friday, touched in the aftermath of stronger-than-expected headline NFP print.

Traders might prefer to stay on the sidelines

However, the fact that the monthly Canadian employment details also came in better than consensus estimates helped offset the positive trigger and kept a lid on any further positive move.

As investors looked past the latest macro releases, the US dollar consolidated its recent strong gains to near four-month tops and failed to provide any fresh bullish impetus to the major.

Meanwhile, the downside remained cushioned, at least for now, amid a weaker tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.

It will now be interesting to see if the pair is able to gain any meaningful traction or continues with its lacklustre trading action amid absent relevant market-moving economic releases on Monday.

Technical levels to watch

 

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