USD/CAD keeps highs around 1.3560 ahead of data

The rally in the greenback remains everything but abated, now pushing USD/CAD to the area of daily tops in the 1.3060/65 band.

USD/CAD focus on CPI, Fedspeak

The pair has gained over a cent since yesterday’s troughs in the 1.3400 neighbourhood, following a further pick up in the demand for the greenback as well as a correction lower in crude oil prices.

The barrel of West Texas Intermediate has deflated from recent tops above the $46.00 mark as the brief OPEC-led bull run seems to have fizzled out.

Later in the session, Canadian inflation figures are due, with consensus seeing headline prices ticking higher at 1.5% on a year to October, while BoC’s Core gauge is expected at 1.8% over the last twelve months.

In the US, speeches by St. Louis Fed J.Bullard (voter, dovish), New York Fed W. Dudley (permanent voter, neutral), KC Fed E.George (voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) should keep markets focused on the buck.

USD/CAD significant levels

As of writing the pair is advancing 0.27% at 1.3558 and a break above 1.3575 (50% Fibo of the 2016 drop) wold open the door to 1.3590 (high Nov.14) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, the initial support lines up at 1.3401 (low Nov.15) followed by 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3260 (low Nov.9).