- The greenback keeps the positive tone near 1.30 vs. CAD.
- Declining crude oil prices weighing on the Canadian dollar.
- US markets stay closed due to the Memorial Day holiday.
The better tone around the greenback is motivating USD/CAD to so far keep the sideline theme between 1.2960 and 1.2980.
USD/CAD looks to Dollar, crude
The greenback has reverted the negative start after auspicious news from Italy gave renewed oxygen to the single currency and quickly lifted EUR/USD to fresh daily lows, forcing the buck to give away some gains.
In addition, crude oil prices are extending the drop in response to the likelihood that the OPEC and Russia could announce an increment of the oil output as soon as the cartel’s next meeting in June.
In the data space, it will be an interesting week for the pair, as the Bank of Canada will hold its monetary policy meeting on Wednesday seconded by the release of GDP figures on Thursday.
In the US calendar, the Conference Board will publish its Consumer Confidence gauge tomorrow, followed by the ADP report and another revision of Q1 GDP on Wednesday, April’s PCE figures on Thursday and the ISM Manufacturing and Non-farm Payrolls on Friday.
USD/CAD significant levels
As of writing the index is up 0.09% at 1.2986 facing the next hurdle at 1.2999 (high May 8) seconded by 1.3126 (2018 high Mar.19) and then 1.3132 (61.8% Fibo of the 2017 drop). On the flip side, a breakdown of 1.2863 (10-day sma) would open the door to 1.2727 (low May 11) and finally 1.2722 (38.2% Fibo of the 2017 drop).
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