USD/CAD holds steady above 1.3800, lacks bullish conviction amid a weaker USD

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The USD/CAD pair attracts some dip-buyers during the Asian session on Tuesday, though it lacks follow-through amid mixed fundamental cues. Spot prices, however, manage to hold comfortably above the 100-day Simple Moving Average (SMA) and stick to modest gains above the 1.3800 round figure.

USD/CAD edges higher during the Asian session on Tuesday, though the upside seems limited.
BoC rate cut bets continue to undermine the CAD and offer some support to the currency pair.
More dovish Fed expectations weigh on the USD and cap spot prices amid an uptick in Oil prices.

The weak Canadian employment data released on Friday lifted market bets in favor of a 25-basis-point (bps) rate cut by the Bank of Canada (BoC) on September 17th. This, in turn, is seen weighing on the Canadian Dollar (CAD) and turning out to be a key factor acting as a tailwind for the USD/CAD pair. That said, a modest recovery in Crude Oil prices limits the downside for the commodity-linked Loonie.

The US Dollar (USD), on the other hand, has declined to a fresh low since July 28 amid expectations for a more aggressive policy easing by the Federal Reserve (Fed). In fact, traders started pricing in he possibility of a jumbo rate cut at the upcoming FOMC meeting next week following the disappointing release of the US Nonfarm Payrolls (NFP) report. This continues to undermine the USD and caps the USD/CAD pair.

Apart from this, the upbeat market mood is seen as another factor denting the Greenback's relative safe-haven status. This, in turn, warrants some caution before positioning for any meaningful appreciating move for the USD/CAD pair. Traders also seem reluctant and might opt to wait for the US Producer Price Index (PPI) and the Consumer Price Index (CPI) on Wednesday and Thursday, respectively.

US Dollar Price Last 7 Days

The table below shows the percentage change of US Dollar (USD) against listed major currencies last 7 days. US Dollar was the strongest against the Canadian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.54%	-0.21%	-0.04%	0.39%	-0.82%	-0.81%	-1.02%
EUR	0.54%		0.32%	0.50%	0.93%	-0.25%	-0.27%	-0.49%
GBP	0.21%	-0.32%		0.18%	0.61%	-0.59%	-0.59%	-0.81%
JPY	0.04%	-0.50%	-0.18%		0.42%	-0.80%	-0.76%	-0.95%
CAD	-0.39%	-0.93%	-0.61%	-0.42%		-1.23%	-1.16%	-1.41%
AUD	0.82%	0.25%	0.59%	0.80%	1.23%		-0.01%	-0.23%
NZD	0.81%	0.27%	0.59%	0.76%	1.16%	0.00%		-0.22%
CHF	1.02%	0.49%	0.81%	0.95%	1.41%	0.23%	0.22%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).