USD/CAD in highs through 1.2750

The renewed buying interest around the greenback is allowing USD/CAD to snap a 3-session negative streak today, hovering over the 1.2760 area after US data.

USD/CAD higher on oil correction, BoC eyed

Weakness around CAD has been sustained by the ongoing correction lower in crude oil prices, dragging the barrel of West Texas Intermediate to the $50.70 area after clinching 11-month highs above the $51.00 mark on Wednesday.

In addition, USD has gathered further support from rising yields in the US money markets, while the US docket showed Initial Claims rose to 264K during last week, taking the 4-Week Average down to 269.5K from 277K.

In Canada, New Housing Price index rose above estimates 0.3% in April. Later in the session BoC’s S.Poloz is due to speak.

USD/CAD significant levels

As of writing the pair is up 0.46% at 1.2754 facing the next hurdle at 1.2895 (55-day sma) ahead of 1.2976 (20-day sma) and finally 1.3145 (high May 30). On the downside, a break below 1.2655 (low Jun.8) would expose 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3).