USD/CAD clings to gains in the mid-1.3100s

The greenback keeps its positive tone intact vs. its Canadian neighbour on Thursday, taking USD/CAD to the 1.3150/55 band for the time being.

USD/CAD looks to USD, oil

The pair advanced to fresh daily tops in the vicinity of 1.3170 during overnight trade, losing some momentum afterwards and slipping back to the current mid-1.3100s.

The recent bull run to levels beyond 1.3200 figure lacked of follow through, although spot seems to have found quite decent support in recent lows around the 1.3140 area, reinforced at the same time by the 200- and 20-day sma.

USD/CAD remains highly dependent on USD-dynamics, as neither yield spreads performance nor crude oil seems to be a strong enough catalyst to propel spot in a clearer direction.

Later in the NA session, the weekly report on the US labour market and speeches by St. Louis Fed J.Bullard (2019 voter, neutral) and Chicago Fed C.Evans (voter, dovish) are due, while BoC Deputy Governor L.Schembri is due to speak on ‘Getting to the Core of Inflation’.

USD/CAD significant levels

As of writing the pair is gaining 0.07% at 1.3153 and a breakout of 1.3215 (high Feb.7) would aim for 1.3268 (55-day sma) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the downside, the next support is located at 1.3140 (200-day sma) seconded by 1.3132 (low Feb.8) and then 1.3072 (low Feb.7).