USD/CAD firmer near 1.2800 ahead of BoC

The Canadian Dollar is depreciating further vs. its American counterpart on Monday, lifting USD/CAD to fresh multi-day highs in the 1.2800 neighbourhood.

USD/CAD looks to BoC, US data

Spot is advancing for the fourth consecutive session today amidst a continuation of the upside momentum around the greenback, which is testing levels last seen in early March beyond 90.70 when tracked by the US Dollar Index.

Higher yields in the US 10-year reference are propping up a wider spread vs. its Canadian peers, in turn favouring the buck and also collaborating with the pair’s up move.

In addition, and also weighing on CAD, investors continue to adjust to the recent cautious tone from the Bank of Canada at its meeting last week.

That said, BoC’s S.Poloz and C.Wilkins are due to speak before the House of Commons Standing Committee on Finance later in the session.

Data wise in the US, Existing Home Sales for the month of March are next on tap seconded by Markit’s preliminary manufacturing gauge and the Chicago Fed index.

USD/CAD significant levels

As of writing the index is gaining 0.24% at 1.2794 and a breakout of 1.2820 (high Apr.9) would aim for 1.2927 (38.2% Fibo of the 2017 drop) and finally 1.2946 (high Apr.2). On the other hand, initial contention emerges at 1.2738 (21-day sma) followed by 1.2623 (200-day sma) and then 1.2525 (low Apr.17).