USD/CAD remains weak below 1.2700 handle

Rising oil prices and deteriorating expectations of a Fed rate-hike continues to boost the Canadian Dollar, with the USD/CAD pair trading close to a 5-week low level of 1.2655 touched on Wednesday.

Supply disruptions in Nigeria and Canada have helped drive oil prices to the highest levels since July 2015 and have benefited commodity-linked currencies like CAD. Moreover, awful May jobs report continues to spur widespread weakness for the US Dollar, which further seems to drive the USD/CAD pair lower.

On the economic data front, Canadian Housing Starts for May, released on Wednesday missed consensus estimates and came-in at 188.6k. Next on tap for Thursday would be speech by BOC Gov Poloz and the weekly US unemployment claims.

Technical levels to watch

At the time of writing, the pair is trading at 1.2681 with immediate downside support near 1.2650 below which 1.2600 round figure mark would be key support to watch for. 

On the flip side, recovery back above 1.2700 could get extended till 1.2735-40 horizontal resistance, which if conquered should assist the pair further towards 1.2845-50 resistance.