The Canadian dollar remains range-bound near 1.4050 against the USD, supported by rising oil prices despite mixed fundamentals.
The USD/CAD pair trades near 1.4050, showing little change in early Asian trading after failing to extend modest recovery gains from the previous session. The pair remains confined to a narrow range as rebounding oil prices provide support for the Canadian dollar.
Prior to this, the pair had struggled to sustain momentum above 1.4050, reflecting mixed market sentiment. Oil prices, a key driver for the loonie, have recovered slightly, capping further upside for USD/CAD. However, broader fundamental factors remain uncertain.
Market reaction has been muted, with spot prices holding steady just below the 1.4050 level. Traders await further cues on monetary policy and commodity trends.