USD/CAD probing highs near 1.2840

• Spot is trading within a consolidative theme.
• Interim resistance appears around 1.2920 (Friday’s top).
• Poloz, Wilkins to speak on Tuesday.

The Canadian Dollar is trading on the defensive vs. its American peer at the beginning of the week, taking USD/CAD to the 1.2830/40 band.

USD/CAD bid after US data

The buying tone around the buck remained unchanged today helped by positive results from the US docket. In fact, personal spending rose 1.0% MoM during last month, surpassing initial expectations, and personal income rose 0.4% inter-month during the same period.

Further data saw inflation figures tracked by the core PCE rising at a monthly 0.1% and 1.3% over the last twelve months.

In the meantime, spot is reverting part of Friday’s retracement from multi-month tops beyond 1.2900 the figure (levels last seen in mid-July), at the same time coming up from the 1.2800 neighbourhood and always with the US-CA spread yield differentials as the main driver for the pair’s price action.

On the positioning front, speculators trimmed their CAD net longs during the week ended on October 24, taking them to 5-week lows according to the latest CFTC report.

USD/CAD significant levels

As of writing the pair is up 0.26% at 1.2843 facing the initial hurdle at 1.2918 (high Oct.27) seconded by 1.2927 (50% Fibo of the 2017 drop) and finally 1.3008 (200-day sma). On the flip side, a breach of 1.2722 (38.2% Fibo of the 2017 drop) would aim for 1.2672 (10-day sma) and then 1.2431 (low Oct.12).