USD/CAD clings to gains above 1.4100; looks to US macro data before the next leg up

USD/CAD sticks to a positive bias for the fifth straight day amid a supportive fundamental backdrop.
Sliding Crude Oil prices undermine the Loonie and act as a tailwind for the pair amid a bullish USD.
Traders now look to this week’s important macro data from the US and Canada for a fresh impetus.

The USD/CAD pair trades with a positive bias for the fifth consecutive day and holds steady above the 1.4100 mark through the early European session on Tuesday. Moreover, spot prices remain close to an over two-week top touched last Friday and seem poised to appreciate further amid a supportive fundamental backdrop.

Crude Oil prices struggle to capitalize on the previous day’s bounce from a one-month low and meet with a fresh supply amid concerns that supply will exceed demand next year. This, in turn, is seen undermining the commodity-linked Loonie, which, along with the underlying bullish sentiment surrounding the US Dollar (USD), turns out to be a key factor acting as a tailwind for the USD/CAD pair.

Meanwhile, traders ramped up for another interest rate cut by the US Federal Reserve (Fed) in December following the recent comments from influential FOMC members. This, in turn, keeps a lid on further gains for the USD and the USD/CAD pair. Traders also seem reluctant to place aggressive directional bets and opt to wait for important macro releases from the US and Canada, due this week.

A rather busy week kicks off with the delayed release of the US Producer Price Index (PPI) and Retail Sales, which will be followed by Pending Home Sales and the Richmond Manufacturing Index. Apart from this, investors will confront the US Durable Goods Orders on Thursday and the monthly Canadian GDP print on Friday, which, in turn, should provide some meaningful impetus to the USD/CAD pair.