- The pair is trading in a narrow range around the 1.30 handle.
- Sideline crude oil prices contribute to today’s performance.
- US API, EIA, FOMC meeting next of relevance.
The greenback alternates gains with losses vs. its Canadian neighbor during the first half of the week, with USD/CAD currently orbiting around the critical 1.3000 milestone.
USD/CAD looks to data, FOMC
Spot is advancing for the second session in a row on Tuesday, looking to consolidate and extend the breakout of the psychological 1.3000 handle.
Adding to today’s sideline theme, prices of the West Texas Intermediate are also consolidating near the $66.00 mark per barrel, always within a multi-day consolidative theme.
In the data space, US inflation figures gauged by the CPI matched forecasts during last month, showing headline consumer prices rising at an annualized 2.2%, same as prices excluding food and energy costs.
Later in the week, the FOMC meeting is expected to announce on Wednesday the second rate hike so far this year, although the centre of the debate among investors will be the updated ‘dots plot’ and the likeliness of extra tightening this year.
USD/CAD significant levels
As of writing the index is up 0.02% at 1.2983 facing the next hurdle at 1.3042 (high Jun.8) seconded by 1.3070 (high Jun.5) and finally 1.3126 (2018 high Mar.19). On the flip side, a breach of 1.2949 (10-day sma) would open the door to 1.2927 (50% Fibo of the 2017 drop) and then 1.2911 (21-day sma).
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