USD/CAD holds weaker near multi-week lows, around 1.2465

The USD/CAD pair traded with a mildly negative bias for the fourth consecutive session and is currently placed at four-week lows, around the 1.2470-60 band.

The pair held weaker below the key 1.25 psychological mark and remained within striking distance of monthly lows amid persistent weaker sentiment surrounding the US Dollar. 

Against the backdrop of growing skepticism about the US President Donald Trump's ability to deliver on his promised pro-growth economic agenda, Friday's disappointment from the Fed Chair Janet Yellen's speech at Jackson Hole Symposium kept the USD on the back foot and was seen weighing on the major. 

Even a modest pull-back in WTI crude oil prices, which tends to dent demand for the commodity-linked currency - Loonie, did little to lend any support and stall the pair's ongoing slide from the vicinity of 1.2800 handle touched on August 15 and 

Today's US economic docket features second-tier economic releases - goods trade balance and wholesale inventories data, which is unlikely to provide any immediate respite for the USD bulls.

   •  USD: The bear market case - AmpGFX

Moreover, as investors assessed the economic impact of the massive Hurricane Harvey, the pair seems vulnerable to extend its downward trajectory in the near-term. 

   •  CAD: Strong Canadian 2Q GDP already baked in the cake – ING

Technical levels to watch

Immediate support is pegged near the 1.2440-30 region, below which the pair is likely to accelerate the slide towards the 1.2400 handle en-route its next major support near mid-1.2300s.

On the upside, any recovery attempts might now confront some fresh supply near the 1.25 handle, which if cleared might trigger a short-covering rally and lift the pair towards 1.2555-60 strong horizontal resistance.