USD/CAD climbs higher toward 1.3500 amid broad-based USD strength
Our preference: long positions above 1.3455 with targets at 1.3505 & 1.3520 in extension.
Alternative scenario: below 1.3455 look for further downside with 1.3440 & 1.3415 as targets.
US Dollar Index inches closer to 98.
West Texas Intermediate stays quiet above $63.
Coming up: The UoM’s Consumer Confidence Index from the U.S.
After spending the large part of the day in a relatively tight range near mid-1.34s,
the USD/CAD pair gained traction in the last couple of hours supported by the strong USD demand. As of writing,
the pair was trading at 1.3492, adding 0.25% on a daily basis.
The broad-based selling pressure surrounding major European currencies following the news of cross-party talks in the
UK failing on Friday seems to be helping the greenback outperform its rivals. The US Dollar Index,
which started a recovery move after testing the 97 handle on Monday, advanced to its highest level since May 3 at 97.95
and was last seen near that level, adding 0.12% on a daily basis.