USD/CAD reverses the move to 1.2650, back in red figures

The pair advanced to highs near 1.2650.
US CPI came in above expectations.
Spot retreats from tops, keeps 1.2600.

Pablo Piovano FXStreet

The greenback is alternating gains with losses vs. the Canadian Dollar today, with USD/CAD quickly reverting the bull run to fresh daily highs in the 1.2650 area following US data releases.

USD/CAD offered after US results

After clinching fresh tops in the mid-1.2600s, the pair has quickly given away those gains and returned to the 1.2580 area, all within the broader consolidative theme prevailing since Monday.

Spot met a bout of buying orders after US inflation figures surprised investors to the upside in January, opening the door at the same time for a potential more aggressive tightening prospects by the Federal Reserve throughout this year.

Looking ahead, US Philly Fed index and the NY Empire State gauge are due tomorrow ahead of Friday’s housing starts and building permits and the Reuters/Michigan index. In Canada, Deputy Governor L.Schembri is due to speak tomorrow on ‘Canada’s approach to price stability’.

USD/CAD significant levels

As of writing the index is losing 0.12% at 1.2577 facing the immediate down barrier at 1.2523 (10-day sma) followed by 1.2469 (23.6% Fibo of the 217 drop) and finally 1.2450 (21-day sma). On the other hand, a breakout of 1.2649 (high Feb.14) would aim for 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2738 (200-day sma).

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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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