USD/CAD: Bears regain control amid high Oil and better jobs data

The Canadian dollar set-off the week on a stronger footing against its American rival this Monday, knocking-off USD/CAD back towards 2-week lows of 1.3420 reached last Friday.

USD/CAD supported at 100-DMA of 1.3436

The resource-linked Loonie received fresh impetus from renewed bounce in oil prices, while better-than expected Canadian employment data continues to buoy the sentiment around the Canadian dollar.

According to the data, employment rose in May by 54.5K above the 11.5K expected. The unemployment rate rose from 6.5% to 6.6% due to an increase in the labor force participation. 

However, the spot managed to find a minor-bid just ahead of the 100-DMA support located at 1.3436 last hour, capping further downside. The losses also remain restricted amid broadly higher treasury yields, which lend some support to the USD bulls.

The US yields extend northwards on the back of a Fed rate hike already discounted by markets, when the Fed meets later this week on a 2-day monetary policy review meeting .

Next of note for the major remains the BOC governing council member Wilkin’s speech due later in the American session ahead of the Fed Budget balance.

USD/CAD Technical levels                

The next resistance can be seen at 1.3472 (NY high), 1.3500 (zero figure) and 1.3524/26 (Jun 8 & 7 highs). Next support to the downside can be found at 1.3420 (2-week lows), 1.3400 (key support) and 1.3371 (200-DMA).