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USD/CAD recovery extends beyond the 1.3300 handle

  • The greenback picks up pace above 1.3300 vs. CAD.
  • Next target lies at 2018 tops at 1.3382 seen last Friday.
  • US Consumer Confidence gauged by the CB next of relevance.

The greenback is now gathering further oxygen vs. its Canadian peer, lifting USD/CAD beyond the 1.3300 barrier and targeting at the same time last week’s YTD peaks in the 1.3380/85 band.

USD/CAD looks to data, yields

Spot is advancing for the second consecutive session so far today and is looking to consolidate in the upper end of the recent range above 1.3300 the figure.

The pair managed to leave behind the initial drop to the 1.3280 region, as the greenback has been under pressure in light of the uncertainty surrounding the US-China-EU trade front.

In the meantime, the 2-year yield gap between the US and Canada continues to reinforce the case for a stronger buck, morphing into extra legs for the pair’s rally.

In the US data space, the S&P/Case-Shiller index is next on tap seconded by the Consumer Confidence gauge tracked by the Conference Board. Additionally, FOMC’s Bostic and Kaplan are also due to speak later in the day.

USD/CAD significant levels

As of writing the pair is up 0.17% at 1.3319 facing the next hurdle at 1.3382 (2018 high Jun.22) seconded by 1.3423 (78.6%% Fibo of the 2017 drop) and finally 1.3541 (high Jun.9 2017). On the flip side, a breach of 1.3258 (low Jun.22) would aim for 1.3229 (10-day sma) and then 1.3132 (61.8% Fibo of the 2017 drop).

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