• USD/CAD oscillates in a narrow trading band and is influenced by a combination of forces.
• An uptick in Oil prices underpins the Loonie and caps the upside amid subdued USD demand.
• Traders look forward to important macro data from the US and Canada for a fresh impetus.

The USD/CAD pair struggles to capitalize on the previous day's goodish rebound from the 1.3630 area, or over a two-week low and oscillates in a narrow trading band through the early European session on Friday. The pair is currently placed just above the 1.3700 mark, though a combination of factors keeps a lid on any meaningful upside.

Crude Oil prices regain positive traction amid fears that rising tensions in the Middle East could disrupt supply, especially after a US air strike on Iran-backed groups. This, in turn, underpins the commodity-linked Loonie, which, along with subdued US Dollar (USD) price action, acts as a headwind for the USD/CAD pair. The Federal Reserve's hint of a pause to interest rate hikes fails to assist the Greenback to build on the overnight recovery move from its lowest level since February 03.