- The pair climbs to 1.2560, fresh tops.
- USD strongly rebounds from 3-year lows.
- U-Mich came in above estimates.
USD-bulls seem to have awoken on Friday and are now lifting USD/CAD to fresh daily peaks in the proximity of 1.2560, around a cent higher than today’s lows in the mid-1.2400s.
USD/CAD bid after data
Spot gained extra upside traction after US housing data came in on the strong side in January, showing housing starts and building permits expanding more than initially estimated.
Furthermore, US preliminary consumer sentiment for the current month also came in above expectations, now seen at 99.9, up from January’s 95.7.
On the Canadian front, industrial shipments contracted at a monthly 0.3% in December, missing consensus and adding to CAD weakness.
In the meantime, spot is closing the week on a negative tone after two consecutive advances, with the 1.2680/85 band (high February 9) offering significant resistance for the time being.
USD/CAD significant levels
As of writing the index is up 0.39% at 1.2538 and a breakout of 1.2554 (high Feb.16) would open the door to 1.2572 (55-day sma) and finally 1.2649 (high Feb.14). On the downside, the initial support emerges at 1.2451 (low Feb.16) followed by 1.2353 (low Jan.5) and then 1.2248 (2018 low Jan.31).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.