USD/CAD in multi-day peaks near 1.2870, BoC eyed

The Canadian Dollar resumes the downside to the 1.2870 region.
Higher US yields keep sustaining the up move in the pair.
Governor Poloz, Deputy Governor C.Wilkins to testify before Senate.

Pablo Piovano FXStreet

The greenback continues it march north vs. its Canadian peer on Wednesday, lifting USD/CAD to the area of new multi-day peaks around 1.2870.

USD/CAD focused on BoC event

The pair keeps the upside momentum unchanged so far this week, reverting Tuesday’s retracement and trading in the upper end of the range near 1.2870, or fresh 3-week tops.

Increasing yields in the US money markets continue to sustain the buying pressure around the buck, which managed to brace 3-month highs above the 91.00 handle when tracked by the US Dollar Index.

Furthermore, the current sideline theme around crude oil prices have been also collaborating with the weaker tone surrounding CAD.

Later in the day, CAD should be in centre stage, as Governor S.Poloz and Deputy Governor C.Wilkins will testify before the Senate Standing Committee on Banking, Trade and Commerce.

USD/CAD significant levels

As of writing the index is gaining 0.19% at 1.2858 and a breakout of 1.2868 (high Apr.25) 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 1.2625 (200-day sma) and then 1.2525 (low Apr.17).

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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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