USD/CAD recovers majority of early lost ground to 2-week lows
• Retakes the 1.27 handle and beyond.
• US weekly jobless claims rise more-than-expected.
• Canadian NHPI matches consensus estimates.
The USD/CAD pair recovered majority of its early lost ground to fresh two-week lows and is now building on its momentum back above the 1.2700 handle.
The US Dollar selling pressure abated, at least for the time being, despite data released from the US showed initial weekly jobless claims jumped more-than-expected to 239K during the week ended Nov. 3, as compared to last week's 229K.
Separately, the Canadian New Housing Price Index (NHPI) matched consensus estimates and came in to show a m-o-m rise of 0.2% for September but passed largely unnoticed.
Meanwhile, a consolidative action around oil markets, with WTI crude oil holding steady just below the $57.00 mark, did little to influence the commodity-linked currency - Loonie, with the USD dynamics acting as an exclusive driver of the pair's movement through the early NA session on Thursday.
Moving ahead, investors’ attention would remain glued to the long-awaited US legislation to overhaul the country's tax code and is expected to be unveiled later today.
• USD/CAD faces resistance near 1.2780 – Scotiabank
Technical levels to watch
A follow-through recovery beyond the 1.2740 level is likely to get extended towards the 1.2775-80 horizontal resistance en-route the 1.2800 handle. On the downside, weakness back below the 1.2700-1.2690 region might now turn the pair vulnerable to extend the downward trajectory towards 100-day SMA support near the 1.2600 handle.