USD/CAD: bears still in control despite the greenback on the march

Currently, USD/CAD is trading at 1.3066, down -0.15% on the day, having posted a daily high at 1.3123 and low at 1.3054.

US dollar index rises for the third day in a row

USD/CAD is better offered still, trading below the 200 sma on the 1 hr sticks located at 1.3091 after a cap at the sharp correction on the 6th Feb that met the descending resistance from the 1.3580's at the end of Dec and 1.3380's on the 20th Jan. Oil has started to come off after last week's rally on production concerns from the US that has not fallen into the OPEC production cut agreement, yet despite a resurgence in the greenback weighing on oil, the loonie remains firm. 

Trump: Southern transactions were not fair; Canada trade is different

In respect of data, last week's labour market report provided another positive headline shock for the CAD. However, analysts at Scotiabank explained that it remains difficult to square the strong jobs growth in the past two months (+102k) with soft wage growth, weaker hours worked and the broader slack still evident in the economy. Meanwhile, Trump was with the PM of Canada today, Trudeau, and there was plenty of positive talk on trade although their policies on borders are in stark contrast with one another when it comes to Syrian refugees.   

Oil bulls capped again, correction headed for break of 4hr sma?

USD/CAD levels

The failure to hold the best of the gains nearer 1.32 still leaves the USD looking technically soft, explained the analysts at Scotiabank, adding, "The absence of any significant trend strength on the short and medium-term oscillator signals likely means that the broader 1.30/1.32 range remains intact for now."