• USD/CAD reverses an early dip to a two-week low and draws support from a combination of factors. 
• Retreating Oil prices undermines the Loonie and acts as a tailwind for the pair amid a bullish USD. 
• Falling US bond yields might cap gains for the USD and any further appreciating move for the pair.

The USD/CAD pair attracts some dip-buying near the 1.3925 area, or a two-week low touched earlier this Monday and climbs to a fresh daily peak during the first half of the European session. The intraday uptick is sponsored by a combination of factors and lifts spot prices to the 1.3975 region in the last hour.

Crude Oil prices kick off the new week on a weaker note and for now, seem to have snapped a two-day winning streak to a two-week high touched on Friday. This, in turn, is seen undermining the commodity-linked Loonie, which, along with the underlying bullish sentiment surrounding the US Dollar (USD), acts as a tailwind for the USD/CAD pair. 

The USD Index (DXY), which tracks the Greenback against a basket of currencies, lacks follow-through selling after the initial reaction to Scott Bessent's nomination as US Treasury Secretary amid bets for a less dovish Federal Reserve (Fed). This turns out to be another factor pushing the USD/CAD pair higher, though the upside potential seems limited.