USD/CAD keeps the red on data, eyes on US elections

USD/CAD is posting decent losses in the 1.3360/55 band following releases in the Canadian docket and ahead of US election results.

USD/CAD fairly muted on data

The pair posted no significant reaction after Canadian Housing Starts dropped to 192.9K and Building Permits have contracted at a monthly 0.7% during September, both prints coming in below initial forecasts.

In the meantime, the barrel of West Texas Intermediate is retreating slightly today, navigating the area of $44.75/70 ahead of the weekly report on US crude oil stockpiles by the API.

However, CAD seems to have decoupled from crude oil dynamics as of late, paying more attention to US-CA yields spread differential, which today remains clearly supportive of the Canadian dollar.

In the US data space, the Business Optimism Index gauged by NFIB rose to 94.9 in October, while JOLTs Jobs Openings are due later.

USD/CAD significant levels

As of writing the pair is losing 0.07% at 1.3356 and a break below 1.3309 (low Nov.8) would aim for 1.3181 (55-day sma) and then 1.3002 (low Oct.19). On the other hand, the initial up barrier aligns at 1.3466 (high Nov.4) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).

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