USD/CAD surges beyond 1.3300 handle, 1-1/2 week tops amid sliding oil prices

   “¢   The USD sticks to modest gains after better-than-expected US economic data.
   “¢   Falling crude oil prices undermine Loonie and remain supportive of the up-move.

The USD/CAD pair held on to its strong bid tone through the early North-American session and refreshed session tops post-US economic releases.

After  a mid-European session dip to 1.3275 area, a combination of supporting factors helped the pair to catch some fresh bids and build on its strong intraday up-move/last week’s goodish recovery move from the vicinity of 100-day SMA support.

The prevalent risk-off mood, as depicted by a weaker trading sentiment around equity markets and reinforced by sliding US Treasury bond yields, extended some support to the US Dollar’s perceived safe-haven status against its Canadian counterpart.  

The already strong greenback got an additional boost from today’s better than expected US economic data – initial weekly jobless claims (213K vs. 220K expected for the week ended Jan. 11) and Philly Fed manufacturing index (17.0 for Jan. vs. 10 anticipated and 9.1 previous).  

This coupled with a sharp fall in crude oil prices further undermined the commodity-linked currency Loonie and remained supportive of the ongoing strong positive momentum further beyond the 1.3300 handle, or fresh 1-1/2 week tops.  

Moving ahead, today’s scheduled speech by the Fed Governor Randal Quarles might influence market expectations over the Fed’s monetary policy outlook and provide some meaningful short-term trading opportunities.

Technical levels to watch