USD/CAD surges through 1.3500 mark amid declining Oil prices, BoC in focus

   •  The USD managed to hold steady despite a slump in the US bond yields.
   •  The ongoing slide in oil prices undermine Loonie and remained supportive.
   •  The market focus remains glued to the latest BoC monetary policy update.

The greenback stood tall against its Canadian counterpart and pushed the USD/CAD pair further beyond the key 1.3500 psychological mark, or fresh multi-month tops in the last hour.

The pair built on last week's goodish bounce from multi-week lows and added to the overnight strong gains, with a combination of supporting factors fueling the positive momentum for the third consecutive session on Wednesday. 

Despite the recent slump in the US Treasury bond yields, lingering concerns about a further escalation in trade disputes between the world's two largest economies continued benefitting the US Dollar's relative safe-haven status.

This coupled with a follow-through weakness in Crude Oil prices, now down nearly 2% for the day, further undermined demand for the commodity-linked currency - Loonie and remained supportive of the up-move.

In fact, WTI Crude Oil tumbled to $58.00/barrel mark on Wednesday amid fears of a prolonged US-China trade war and gloomy global growth outlook, which could negatively affect demand for the commodity. 

The up-move to the highest level since early-Jan. could further be attributed to some repositioning trade ahead of the key event risk - the BoC monetary policy update, scheduled to be announced later during the early North-American session. 

Hence, it would be prudent to wait for a subsequent up-move to see if the up-move marks a fresh bullish break-out or once again fizzles out at higher levels amid absent relevant market moving releases from the US.

Technical levels to watch