USD/CAD drops to lows near 1.3450 on USD selling

The greenback has now accelerated its selling bias, dragging USD/CAD to test daily lows in the mid-1.3400s for the time being.

USD/CAD attention to oil, USD

Spot is printing 2-day lows in the vicinity of 1.3450 on Friday as a bout of selling pressure continues to punish the buck early in the European session.

The US Dollar Index (DXY) is now retreating for the second session in a row after hitting fresh 13-year tops beyond the key 102.00 barrier on Wednesday, bringing in some respite for the risk-associated assets.

In the meantime, the softer tone in crude oil prices has dragged the barrel of West Texas Intermediate back below the $48.00 mark, limiting the downside in CAD somewhat.

Later in the NA session US October’s Trade Balance figures are due followed by the Services PMI tracked by Markit and the weekly report on US drilling  activity by Baker Hughes.

USD/CAD significant levels

As of writing the pair is losing 0.17% at 1.3468 and a break below 1.3374 (low Nov.22) would aim for 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3260 (low Nov.9). On the other hand, the next up barrier aligns at 1.3566 (high Nov.18) ahead of 1.3575 (50% Fibo of the 2016 drop) and finally 1.3590 (high Nov.14).