USD/CAD trims gains, back near 1.3280

  • The pair moves higher to 1.3300, just to retreat afterwards.
  • WTI posting decent losses near $52.20/barrel.
  • Canadian trade balance figures next on tap.

After climbing to fresh daily highs near 1.3300 the figure, USD/CAD lost some vigour and receded to the current 1.3280 region.

USD/CAD looks to data, oil

CAD recovered some ground after dropping to fresh lows near 1.3300 the figure vs. its American peer in early trade. However, the softer tone in crude oil prices keep weighing on the comm-bloc, with the barrel of West Texas Intermediate down nearly 1% and testing the $52.00 mark.

In the meantime, spot has resumed the upside today following Friday’s negative performance in response to solid prints from the Canadian labour market during last month.

Looking ahead, Canadian trade balance figures for the month of December are only due in the NA session.

What to look for in CAD

CAD keeps looking to risk-appetite trends and crude oil dynamics as the main drivers of the price action in the near term, as speculations of further tightening by the Bank of Canada appear somewhat diminished. In addition, CAD is also looking at developments from the ongoing US-China trade dispute and the upcoming talks later in the week in Beijing.

USD/CAD significant levels

As of writing the pair is advancing 0.07% at 1.3283 and faces the initial hurdle at 1.3329 (high Feb.8) followed by 1.3334 (55-day SMA) and finally 1.3375 (high Jan.24). On the downside, a breach of 1.3243 (21-day SMA) would expose 1.3223 (50% Fibo of the October-December up move) and then 1.3195 (10-day SMA).

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 assets. 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 Open Markets 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.

Feed news