USD/CAD within a narrow range below 1.2500

The Canadian Dollar is alternating gains and losses vs. the greenback on Thursday, with USD/CAD navigating a tight 30+ pips range.

USD/CAD gains capped near 1.2600

The pair is attempting to consolidate after yesterday’s strong pullback amidst the generalized offered bias around the greenback.

In the meantime, US-CA yield spread differentials continue to drive the sentiment around spot, relegating crude oil dynamics to a secondary role for the time being. In this regard, it is worth mentioning that the barrel of West Texas Intermediate is shedding nearly a dollar (or around 1.5%) to the $51.30 region.

Auspicious results from US initial claims and the higher-than-expected Philly Fed manufacturing index did little-to-nothing to spark a lasting bull run in the buck, while investors keep looking to tomorrow’s key releases in Canada: inflation figures and retail sales.

USD/CAD significant levels

As of writing the pair is up 0.13% at 1.2483 facing the next up barrier at 1.2511 (high Oct.17) followed by 1.2599 (high Oct.6) and finally 1.2664 (high Aug.31). On the other hand, a breach of 1.2431 (low Oct.12) would open the door to 1.2431 (low Oct.12) and then 1.2253 (low Sep.22).