USD/CAD flirting with session tops near 1.2780

Spot moved higher following US data releases.
CAD drops to multi-day lows near 1.2800.
Focus now on Wilkins, BoC Review.

Pablo Piovano FXStreet

The greenback extended its gains vs. its Canadian peer on Wednesday, pushing USD/CAD to the area of daily highs around 1.2780.

USD/CAD bid after data

The pair gained extra upside traction today after US Core inflation figures gauged by the CPI rose above estimates at an annualized 1.8%, while headline retail sales expanded 0.2% on a monthly basis in October, also bettering prior surveys.

On the not-so-bright side, the regional manufacturing gauge measured by the Empire State index missed consensus for the current month at 19.4, also coming down from October’s 30.2.

In the meantime, spot is prolonging the weekly up move after finding quite decent support in the 1.2665/60 band last Friday, always with US-CA yield spread differentials as the main driver for the price action.

Ahead in the session, Deputy Governor C.Wilkins will speak on ‘Monetary policy under uncertainty’ ahead of the BoC’s Review scheduled for tomorrow and key Canadian inflation figures out on Friday. in view of strategists at Scotiabank, “Wilkins is likely to maintain a cautious bias to policy tightening, echoing the recent tone from both Gov. Poloz and the October 25 policy statement”.

USD/CAD significant levels

As of writing the pair is gaining 0.40% at 1.2782 facing the initial hurdle at 1.2821 (high Nov.7) seconded by 1.2918 (high Oct.27) and finally 1.2927 (50% Fibo of the 2017 drop). On the downside, a breach of 1.2664 (low Nov.19) would aim for 1.2582 (100-day sma) and then 1.2510 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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