USD/CAD through 1.3100 on US data, BoC eyed

The greenback has picked extra pace vs. its Canadian peer on Wednesday, lifting USD/CAD to fresh tops beyond 1.3100 the figure.

USD/CAD stronger on US CPI, waits for BoC

Spot has so far managed well to revert Tuesday’s sharp sell off to the vicinity of the psychological support at 1.3000, up over a cent and regaining the key up barrier at the 1.3100 handle.

Declining crude oil prices are giving extra legs to the selling bias surrounding CAD, with the barrel of West Texas Intermediate shedding more than 2% to the $51.30 area ahead of the API’s weekly report due later in the NA session.

USD remains well underpinned by momentum and rising inflation figures in the US economy, as consumer prices rose at an annualized 2.1% during December, matching consensus.

The pair should remain in centre stage later in light of the BoC’s interest rate decision (0.50% exp.) and further US releases along with the Fed’s Beige Book and speeches by Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen.

USD/CAD significant levels

As of writing the pair is gaining 0.46% at 1.3102 facing the initial hurdle at 1.3191 (high Jan.16) followed by 1.3275 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop). On the flip side, a breach of 1.3016 (low Jan.17) would open the door to  1.3002 (low Oct.19) and finally 1.2996 (low Sep.22).