USD/CAD recovers further from one-week low, refreshes daily high post-US GDP

• USD/CAD rebounds swiftly from a one-week low touched earlier this Thursday.
• The emergence of some USD buying is seen as a key factor acting as a tailwind.
• An upward revision of the US GDP remains supportive of the intraday move up.
• Bullish oil prices could underpin the Loonie and keep a lid on any further gains.

The USD/CAD pair stages a goodish rebound from the 1.3570 area, or a one-week low touched earlier this Thursday and hits a fresh daily high heading into the North American session. The pair is currently placed around the 1.3635-1.3640 area, up over 0.20% for the day, and for now, seems to have snapped a three-day losing streak.

A modest pullback in the US equity futures assists the safe-haven US Dollar to recover a major part of its intraday losses, which, in turn, is seen acting as a tailwind for the USD/CAD pair. The USD gets an additional lift following an upward revision of the US GDP print, which showed that the economy expanded by a 3.2% annualized pace during the third quarter. This was well above the 2.9% estimated previously and favours the USD bulls. That said, the ongoing retracement slide in the US Treasury bond yields should keep a lid on any meaningful upside for the greenback.

Despite the Fed's hawkish commentary, investors expect the US central bank to pivot to something more neutral and drag the US Treasury bond yields lower. Apart from this, bullish crude oil prices continue to underpin the commodity-linked Loonie and might further contribute to capping the the USD/CAD pair. Crude oil prices climb to a two-and-half-week high amid the optimism over fuel demand recovery. That said, worries about a surge in new COVID-19 cases could act as a headwind for the black liquid. The mixed fundamental backdrop warrants some caution for aggressive traders.

Technical levels to watch