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usdcad1211The USD/CAD pair traded with a negative bias through the early European session, albeit has managed to trim a part of its intraday losses and was last seen hovering near the 1.2765-70 region. The pair failed to capitalize on the previous day's solid bounce of around 130-35 pips from multi-year lows, instead witnessed some fresh selling during the first half of the trading action on Tuesday.

The downfall marked the fifth day of a negative move in the previous six and was exclusively sponsored by the emergence of some fresh selling around the US dollar. Hopes for a strong global economic recovery in 2021 remained supportive of the underlying bullish tone in the financial markets. This, along with the likelihood of more US fiscal stimulus and expectations that the Fed would keep rates lower for a longer period, continued denting the greenback's safe-haven status and exerted some downward pressure on the USD/CAD pair.