12.11 - USD/CAD continued gaining positive traction
- by George Solotarov
The USD/CAD pair edged higher through the Asian session on Thursday and climbed to fresh weekly tops, around the 1.3090 region in the last hour. The pair prolonged this week's recovery move from over two-year lows and gained positive traction for the third consecutive session. A modest pullback in the US equity futures benefitted the US dollar's relative safe-haven status, which, in turn, was seen driving the USD/CAD pair higher.
The global flight to safety was reinforced by a steep decline in the US Treasury bond yields. This, along with concerns about the continuous surge in new infections in the United States and reviving hopes for additional fiscal stimulus measures, might hold the USD bulls from placing aggressive bets. This makes it prudent to wait for some strong follow-through selling, possibly beyond the 1.3100 mark, before confirming that the pair has bottomed out and positioning for any further near-term appreciating move.