USD/CAD challenges 2016 lows around 1.2760

The risk-on environment is giving fresh legs to the Canadian dollar, in turn sending USD/CAD to the vicinity of 1.2760, daily lows.

USD/CAD lower on oil, USD-selling

Renewed offered tone around the greenback plus a recovery in crude oil prices – barrel of West Texas Intermediate now above the $41.00 mark – is helping to sustain the solid risk-on sentiment following the Asian session on Tuesday.

Spot has filled yesterday’s gap towards the 1.3000 handle in the aftermath of the Doha meeting on Sunday, and remains well on its way to potentially challenge 2016 lows in the 1.2740 region if current market conditions extend into the European/NA session.

Data wise today, Building Permits and Housing Starts will take centre stage in US, while the speech by Governor S.Poloz is expected in Canada.

USD/CAD significant levels 

As of writing the pair is losing 0.19% at 1.2762 and a breakdown of 1.2744 (2016 low Apr.13) would aim for 1.2652 (low Jul.10 2015) and finally 1.2124 (monthly low Jun.24 2015). On the other hand, the next hurdle lines up at 1.2993 (20-day sma) followed by 1.3219 (high Apr.5) and then 1.3298 (high MAr.24).