A combination of things allowed USD/CAD to realize some positive traction on Tuesday.
Concerns about rising inflationary pressure, a softer risk tone benefitted the greenback.
Sliding petroleum prices undermined the loonie and provided a modest lift to the main .
The USD/CAD pair traded with a light positive bias during the first European session, albeit lacked any strong follow-through buying and remained below the 1.2100 mark.
Following the previous day’s modest pullback of around 25 pips, the pair managed to realize some positive traction on Tuesday and was supported by a mixture of things . That said, the USD/CAD pair, so far, has struggled to register any meaningful recovery and remained well within the striking distance of multi-year lows, round the key 1.2000 psychological mark touched last week.
Friday’s softer NFP print tempered market expectations that the Fed could begin tapering its asset-purchases sooner instead of later. That said, investors remain worried over rising inflationary pressure. aside from this, a softer tone round the equity markets further drove some haven flows towards the greenback and acted as a tailwind for the USD/CAD pair, a minimum of for now.