USD/CAD trims losses, around 1.2780 ahead of US docket

The pair advances further and test the area around 1.2780.
CAD gives away gains after clinching highs in the mid-1.2700s earlier.
US docket includes the Philly Fed index and Initial Claims.

Pablo Piovano FXStreet

The now better tone around the greenback is prompting USD/CAD to abandon the area of session lows and test the 1.2780/85 band, near daily highs.

USD/CAD focused on US data

The pair is approaching the positive territory on Thursday after briefly testing the area of daily lows in the mid-1.2700s.

The greenback is now resuming the upside and is poking the upper end of the range when tracked by the US Dollar Index, all amidst a pick up in yields of the key US 10-year reference to the region above the 3.10% level.

Further out, the West Texas Intermediate is recording fresh multi-year tops beyond the $72.00 mark peer barrel, lending extra support to the Canadian Dollar.

Later in the NA session, the attention should be on the Philly Fed manufacturing gauge and the weekly report on Initial Claims as well as speeches by Minneapolis Fed N.Kashkari (non voter, dovish) and Dallas Fed R.Kaplan (non voter, hawkish).

USD/CAD significant levels

As of writing the index is losing 0.09% at 1.2782 and a break below 1.2727 (low May 11) would open the door to 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2647 (200-day sma). On the upside, the initial hurdle aligns at 1.2835 (10-day sma) seconded by 1.2927 (50% Fibo of the 2017 drop) and finally 1.2999 (high May 8).

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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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