USD/CAD: Loonie fails to benefit from OPEC-led Oil rally

The US dollar suffers moderate losses against the Canadian dollar in the mid-European session, keeping USD/CAD within a striking distance of session troughs reached just ahead of 1.34 handle.

USD/CAD awaits Canadian GDP

Currently, the USD/CAD pair is last seen exchanging hands at 1.3415, down -0.13% so far, eyeing for a break below 1.3400 levels. The major stands resilient to the resurgence demand for oil, as market begin to believe that an output deal will be reached at the OPEC meeting today.

Moreover, the oil-price rally seems to have restored investors’ confidence in risky assets, thus, pushing the treasury yields higher, which in turn underpins the USD bulls and helps limit the loss in USD/CAD.

Next of note for the major, in terms of macro news, remains the US ADP jobs and Canadian GDP report, which will be reported in the NA session. Meanwhile, markets will continue to take cues from the OPEC-related news flow.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3470 (5, 10 & 20-DMA confluence) and 1.3500 (zero figure) and from there to1.3566 (Nov 18 high). To the downside, immediate support might be located at 1.3400 (round figure) and below that at 1.3374 (Nov 22 low) and at 1.3352 (daily S2).