• USD/CAD stays pressured around intraday low, extends late Friday’s pullback.
• Market’s cautious optimism, downbeat comments from Fed’s Kashkari weigh on US Dollar.
• Fears emanating from Russia, US Dollar retreat allow WTI crude oil to pare recent losses.
• Canada GDP, Fed’s preferred inflation eyed for clear directions.

USD/CAD prints mild losses as it extends the late Friday’s pullback from the highest levels in eight days to 1.3730 during Monday’s sluggish Asian session. In doing so, the Loonie pair cheers the US Dollar’s pullback, as well as firmer prices of Canada’s key export earner, namely WTI crude oil.

US Dollar Index (DXY) snaps two-day rebound as it retreats to 103.00 after Minneapolis Fed President Neel Kashkari flags fears of US recession. Also weighing on the greenback could be the US Treasury bond yields’ failure to regain upside momentum.

It’s worth noting that headlines from Bloomberg seemed to have contributed to the risk-on mood and weighed on the US Dollar, allowing USD/CAD to ease. “First Citizens BancShares Inc. is in advanced talks to acquire Silicon Valley Bank after its collapse earlier this month, according to people familiar with the matter,” said Bloomberg.

On the other hand, WTI crude oil rises half a percent intraday to near $69.70 while printing the first daily gains in three. The black gold’s latest gains could be linked to the cautious optimism in the market, as well as the headlines suggesting Russia’s shifting of nuclear weapons near Belarus. “The North Atlantic Treaty Organization (NATO) NATO on Sunday criticized Vladimir Putin for what it called his ‘dangerous and irresponsible’ nuclear rhetoric, a day after the Russian president said he planned to station tactical nuclear weapons in Belarus,” per Reuters.