- The pair eases from earlier tops beyond 1.2900 the figure.
- US 10-year yields manage to keep business above 3.0% level.
- Fedspeak next of relevance for the buck later in the day.
The Canadian Dollar is trading on a firm note vs. its American peer at the beginning of the week, taking USD/CAD to the lower bound of the range near 1.2860.
USD/CAD focused on Fedspeak
After two consecutive daily advances, the pair is leaving behind the area of Friday’s tops beyond 1.2900 the figure and returning to the 1.2865/60 band today, or daily lows.
The down move in spot is echoing the correction lower in the buck, which recorded earlier fresh YTD peaks above the key 94.00 milestone when tracked by the US Dollar Index.
In addition, yields of the US 10-year note are stabilizing in the lower end of the daily range between 3.06% and 3.08%, coming down from last week’s multi-year tops around 3.13%.
Later in the session, Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish) are all due to speak ahead of Wednesday’s key FOMC minutes.
USD/CAD significant levels
As of writing the index is losing 0.18% at 1.2875 and a break below 1.2845 (21-day sma) would open the door to 1.2727 (low May 11) and finally 1.2722 (38.2% Fibo of the 2017 drop). On the upside, the initial hurdle aligns at 1.2926 (high May 15) seconded by 1.2999 (high May 8) and then 1.3126 (2018 high Mar.19).
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