USD/CAD clinches 1.2900 and above on CA GDP

• Canadian GDP missed consensus in September.
• Spot leaps to highs around the 1.2900 handle.
• Poloz’s speech on sight.

The Canadian Dollar accelerated its downside vs. its American neighbour on Tuesday, pushing USD/CAD to the area of fresh tops in the 1.2900 area.

USD/CAD bid after data

The pair met a wave of upside pressure after Canadian GDP figures showed the economy contracted 0.1% during September vs. a forecasted expansion of 0.1%.

In addition, Canadian raw material price index also came in below expectations, down 0.1% during the same period.

Yields of the Canadian 2-year reference dropped to fresh lows in the wake of the release, widening the spread vs. the American benchmark and thus adding extra legs to the pair’s jump.

Ahead in the session, S&P/Case-Shiller index is next on tap in the US docket seconded by the Chicago PMI and October’s consumer confidence gauged by Conference Board. In Canada, Governor S.Poloz and Deputy Governor C.Wilkins will speak before the House of Commons later in the day.

USD/CAD significant levels

As of writing the pair is up 0.60% at 1.2910 facing the initial hurdle at 1.2918 (high Oct.27) seconded by 1.2927 (50% Fibo of the 2017 drop) and finally 1.3007 (200-day sma). On the flip side, a breach of 1.2722 (38.2% Fibo of the 2017 drop) would aim for 1.2710 (10-day sma) and then 1.2431 (low Oct.12).