USD/CAD Inter-Markets: Further Rangebound Likely
USD/CAD is prolonging its current sideline theme in the mid-1.3000s following below-expectations results from the Canadian GDP figures during the first quarter, while US data releases have somewhat added to recent positive results in the US economy.
The consolidative pattern also seems to be reinforced by the better performance of the US 5yo yields when compared with their Canadian peers, although the greenback – tracked by the US Dollar Index (DXY) – keeps alternating gains with losses, reflecting the choppiness around Fed Fund contracts.
The downbeat sentiment surrounding CAD following the GDP releases has been balanced out by the upside in the West Texas Intermediate, trading in levels just shy of the critical $50.00 mark per barrel.
All in all, in the very near term and with US Non-farm Payrolls looming large, it will not be surprising to see the pair extending the current price action, which so far remains capped by last week’s tops near 1.3200 the figure and with decent support in the low-1.3000s.