USD/CAD off highs, back around 1.2830
- Upside lost momentum around 1.2850.
- Softer WTI prices weighing on CAD.
- Yellen, US GDP next in the docket.
The selling pressure around the Canadian Dollar has picked up pace on Wednesday and helped USD/CAD to advance to fresh tops in the 1.2850 region.
USD/CAD focused on US data, Yellen
The pair is up for the fifth session in a row today, trading just below fresh 4-week tops in the 1.2860 region recorded earlier in the session. Furthermore, spot has gained around 2 big figures since November’s low in the 1.2665/60 band.
The bearish note around crude oil prices keeps weighing on the Canadian Dollar so far today, with the barrel of West Texas Intermediate retreating to fresh lows in the mid-$57.00s although recovering some ground soon afterwards.
As usual, US-CA yield spread differentials continue to rule the sentiment around the pair, with spreads of the 2-year reference navigating multi-month tops for the time being.
Later in the NA session, Chair J.Yellen will testify before the Joint Economic Committee of Congress on the US economic outlook. In addition, NY Fed W.Dudley (permanent voter, centrist) and San Francisco Fed J.Williams (2018 voter, centrist) are also scheduled to speak, while the second revision of the US Q3 GDP will be the salient event seconded by October’s pending home sales and the Fed’s Beige Book.
USD/CAD significant levels
As of writing the pair is gaining 0.04% at 1.2823 facing the initial hurdle at 1.2849 (high Nov.28) seconded by 1.2918 (high Oct.27) and finally 1.2927 (50% Fibo of the 2017 drop). On the other hand, a breach of 1.2765 (10-day sma) would open the door to 1.2671 (low Nov.24) and then 1.2601 (55-day sma).