USD/CAD struggles near 2-week lows, bears eyeing 1.3400 mark ahead of Powell

• The USD fails to capitalize on the intraday uptick amid increasing Fedrate cut bets.

• Rebounding US bond yields do little to impress the USD bulls or lend any support.

• Weaker Oil prices undermine Loonie and helped limit deeper losses, at least for now.

The USD/CAD pair remained depressed through the mid-European session and is currently placed at the lower end of its daily trading range, or near two-week lows.

The pair added to the overnight heavy losses and maintained its offered tone for the second consecutive session, also marking the third day of negative move in the previous four amid the prevailing US Dollar selling bias. 

Expectations that the Fed will need to react with looser monetary policy in order to support the economy continued hurting the greenback and turned out to one of the key factors exerting some downward pressure on the major.

The USD bulls seemed rather unimpressed by a goodish bounce in the US Treasury bond yields, albeit weaker Crude Oil price undermined the commodity-linked currency - Loonie and helped limit further downside, at least for now.

Oil prices fell over 1.0% on Tuesday ahead of the weekly inventory report by API on concerns that the ongoing US-China trade tensions could lead to a global economic slowdown and risk denting energy demand.

Moving ahead, Tuesday's key focus will be on the Fed Chair Jerome Powell's scheduled speech, which might provide fresh clues over the central bank's policy outlook and produce some meaningful trading opportunities.

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