USD/CAD: In bullish consolidation around 1.2650 amid USD strength, weaker WTI
- USD/CAD bides times for the next leg higher, as USD remains firmer on the session.
- Covid concerns weigh on WTI prices while boding well for the safe-haven USD.
- All eyes remain on the FOMC minutes amid a quiet start to the week.
USD/CAD is tracking the ongoing strength in the US dollar across its main competitors, consolidating near seven-week tops, starting out a fresh week on the right footing.
The major got a double booster shot from the risk-averse market conditions on Friday, as the covid resurgence in Europe and risks of a potential lockdown weighed heavily on the market sentiment.
The resultant risk-off trading lifted the US dollar’s safe-haven demand while raising concerns over the demand for fuel, knocking off WTI prices to the lowest levels in seven-week below the $75 mark.
Meanwhile, the loonie buyers failed to benefit from the upbeat Canadian Retail Sales data. The Canadian consumer spending outpaced the market’s expectations on Friday, arriving at -0.6% MoM in September vs. -1.7% expected.
Looking ahead, the sentiment around the US dollar and oil prices will continue influencing the currency pair, as investors keep an eye on the latest covid updates amid a data-sparse economic calendar on Monday.
USD/CAD: Technical levels to watch out