USD/CAD stronger, through 1.3200 ahead of data

The greenback keeps the firm fashion on Tuesday, now taking USD/CAD to fresh tops in the 1.3200 neighbourhood.

USD/CAD focus on data

The pair met extra upside pressure during the European morning, advancing to fresh daily highs in the proximity of 1.3200 the figure, always backed by an extension of the solid momentum around the buck.

Declining crude oil prices are adding to CAD-weakness today, with barrel of West Texas Intermediate breaking below the $53.00 mark and posting fresh 4-day lows at the same time.

Also sustaining the up move, US-CA 2-year yield spread has widened to around 43 pts at the time of writing, all amidst a solid performance from US yields, as opposed to their Canadian peers.

CAD remains supported by speculative positioning at the same time, with net longs climbing to the highest level since late September in the week to January 31, according to the latest CFTC report.

In the data space, US and Canadian Trade Balance figures are due along with Ivey’s PMI, Building Permits, JOLTs Job Openings and Credit Consumer.

USD/CAD significant levels

As of writing the pair is gaining 0.93% at 1.3204 facing the next hurdle at 1.3282 (55-day sma) ahead of 1.3287 (100-day sma) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the other hand, a breach of 1.3004 (low Feb.6) would expose 1.2977 (low Feb.2) and then 1.2967 (low Jan.31).