USD/CAD unchanged around 1.3100, BoC on sight

The Canadian dollar is trading almost unchanged vs. its American peer on Wednesday, now sending USD/CAD back above the 1.3100 handle.

USD/CAD attention to BoC

The pair is struggling to return to the positive territory today after four consecutive sessions with losses following a broad-based selling bias around the greenback.

Tepid results from US inflation figures on Tuesday have added to the downbeat sentiment around USD, although expectations of a probable Fed move by year-end continue to limit the downside in the buck for the time being.

CAD has also derived support after the API reported on Tuesday an unexpected decrease of 3.8 million barrels in crude stockpiles in the week to October 14. In the meantime, the barrel of West Texas Intermediate remains on a firm note, up around 1% just below the $51.00 mark ahead of the EIA’s weekly report on crude inventories due later.

Later in the session, the BoC is expected to leave its monetary status quo unchanged at today’s meeting, while the attention will shift to the subsequent press conference by Governor S.Poloz.

In the US data space, Building Permits and Housing Starts are due along with the Fed’s Beige Book and speeches by San Francisco Fed J.Williams (2018 voter, neutral), Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral).

USD/CAD significant levels

As of writing the pair is up 0.02% at 1.3115 with the next hurdle at 1.3172 (200-day sma) followed by 1.3314 (high Oct.7) and finally 1.3575 (50% Fibo of the 2016 drop). On the other hand, a breakdown of 1.3050 (low Oct.18) would open the door to 1.3026 (100-day sma) and then 1.2996 (low Sep.22).

 

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