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The Canadian dollar continues to sink against the US dollar due to broad-market risk-off flows. Oil-dependent Canadian dollar is receiving only minor support from crude oil prices, which are seeing a minor rebound after halting a three-day decline.
Canada has both Purchasing Manager Index (PMI) and Employment Rate figures due this week, but market impact is likely to remain muted as investors jockey for position ahead of the US Non-Farm Payroll (NFP) data drop on Friday.
The USD/CAD pair crossed the 1.3700 technical barrier early Tuesday, sending the pair to a daily high of 1.3736. The US dollar remains well-bid across overly cautious markets as investor confidence shakes out.
Surging US Treasury yields, faltering global growth outlook, supply-constrained rising oil prices, and a short-term government funding stopgap for the US are all sending investors into the safe-haven US dollar.
Crude Oil prices are rebounding after three straight days of declines as CAD tries to suture the bleed against the US dollar. Economists from several large banks are starting to caution that the USD/CAD could be poised for a rebound if market flows ease up. The US-Canada rate differential remains the key theme to capping USD/CAD chart flows.
