USD/CAD bears in control as WTI remains above 4hr 55 sma and through 52 handle

Currently, USD/CAD is trading at 1.3269, down -0.43% on the day, having posted a daily high at 1.3336 and low at 1.3261.

USD/CAD is on the move with oil making tracks to the upside, where WTI has broken the 4hr 55 sma at 51.97 giving CAD a 0.4% lead in an environment of mild USD weakness. Focus remains on rates this week given the lack of economic scheduled data. "Interest rate differentials have been a key driver for CAD over the past two weeks," explained analysts at Scotiabank, adding, "Friday's CPI disappointment has softened expectations for BoC policy, nearly eliminating the 5bpts of tightening (12 month horizon) that OIS had been pricing in throughout most of January. We remain CAD bears on the basis of relative central bank policy, looking to a neutral BoC and a 'gradually' hawkish Fed."

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USD/CAD levels

Current price is 1.3269, with resistance ahead at 1.3276 (Daily 20 SMA), 1.3277 (Daily Classic S1), 1.3283 (Yesterday's Low), 1.3284 (Daily 100 SMA) and 1.3297 (Hourly 20 EMA). Next support to the downside can be found at 1.3261 (Daily Low), 1.3245 (Weekly Classic PP), 1.3230 (Hourly 100 SMA), 1.3227 (Daily Classic S2) and 1.3190 (Hourly 200 SMA).

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