- The pair moves higher and prints fresh highs near 1.3160.
- The solid momentum in the buck is behind the up move.
- US flash Q3 GDP next of relevance in the docket.
The buying interest around the greenback is picking up further pace on Friday and is now lifting USD/CAD to fresh tops in the 1.3150/60 band.
USD/CAD looks to data, USD
The greenback continues to hurt the commodity-complex at the end of the week, impacting on the Canadian Dollar and thus sponsoring the current recovery in the pair.
In addition, prices of the West Texas Intermediate are fading yesterday’s up tick and are now challenging the key support at the $66.00 mark per barrel, all collaborating with the downside in CAD.
The robust sentiment in USD has eclipsed the recent hawkish tone from the Bank of Canada following the rate hike at Wednesday’s meeting, which forced spot to retreat to the boundaries of 1.2960.
Looking ahead, the buck should remain in centre stage in light of the publication of the preliminary figures of Q3 GDP along with the final print of the U-Mich index.
USD/CAD significant levels
As of writing the pair is gaining 0.57% at 1.3148 facing the next hurdle at 1.3176 (high Aug.15) seconded by 1.3228 (high Sep.8) and finally 1.3292 (high Jul.20). On the flip side, a breach of 1.3059 (10-day SMA) would aim for 1.3021 (55-day SMA) and then 1.2967 (low Oct.24).
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