USD/CAD in red, sidelined above 1.2900

  • The greenback remains on the defensive, taking spot to the 1.2940 region.
  • The pair faded Tuesday’s spike to the 1.2980 region.
  • CAD recovers ground after yesterday’s plunge on Poloz’s speech.

USD/CAD is extending the rangebound theme in the 1.2940/50 region so far today, shedding some ground following Tuesday’s peaks around 1.2980.

USD/CAD lower on US data, Trump

After two consecutive daily advances, spot is now correcting lower despite the better tone surrounding the greenback vs. the rest of its peers.

In fact, the US Dollar gave away some ground following disappointing figures from February’s Retail Sales (-0.1% MoM act.), although it has managed to grab some buying interest soon afterwards.

In the meantime, the pair is attempting some consolidation in the upper end of the recent range, well above the 1.2900 handle, after the dovish appreciations from BoC’s S.Poloz at his speech yesterday. It is worth mentioning that Poloz suggested that the economy may be able to growth without rising inflation, which was perceived as dovish by investors and somewhat against market consensus of a rate hike as soon as July.

Still in the data space, US Producer Prices rose above estimates 0.2% MoM in February and Business Inventories expanded 0.6% inter-month during the same period.

Later in the NA session, the EIA will publish its weekly report on US crude oil supplies (+2.023 mb exp.)

USD/CAD significant levels

As of writing the index is losing 0.13% at 1.2948 and a breach of 1.2803 (low Mar.12) would target 1.2722 (38.2% Fibo of the 2017 drop) en route to 1.2662 (200-day sma). On the other hand, the next up barrier is located at 1.2986 (high Mar.13) seconded by 1.3001 (2018 high Mar.5) and finally 1.3349 (high Jun.21 2017).

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