USD/CAD retreats from 1.2100

FXStreet (Edinburgh) - After hitting fresh multi-year highs beyond 1.2100 the figure, USD/CAD is now giving away some gains albeit keeping the trade in the upper 1.2000s.

USD/CAD stronger, follows USD

The strong sentiment towards the greenback after yesterday’s US holiday boosted spot to tops above the 1.2100 handle, levels last seen in April 2009 and extends its positive streak to five consecutive months so far. Data from the US economy today saw the Housing Market index tracked by NAHB ticking lower to 57 for the present month vs. 58 expected and previous; on the Canadian side, Manufacturing Sales disappointed traders, contracting 1.4% inter-month in November, collaborating with the softer tone in CAD. Ahead in the week, the most relevant event will be tomorrow with the BoC monetary policy meeting and subsequent press conference by Governor S.Poloz.

USD/CAD levels to consider

At the moment the pair is up 1.18% at 1.2088 with the next hurdle at 1.2114 (2015 high Jan.20) followed by 1.2202 (76.4% of 1.3066-0.9407) and then 1.2270 (high Apr.24 2009). On the downside, a break below 1.2055 (low Jan.20) would expose 1.1985 (high Jan.19) and finally 1.1940 (low Jan.20).

Forex Top movers: USD on the offensive; USD/CAD at 6-year highs

The US dollar is gaining ground on Tuesday as investors are betting on safer assets such as the Greenback and the Gold. The USD is the top performer among majors, including a maximum of six years against its Canadian counterpart.
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