USD/CAD sinks to lows near 1.3120, Fedspeak eyed

The Canadian dollar remains on a firm note in the second half of the week, now relegating USD/CAD to daily lows in the 1.3125/20 band.

USD/CAD attention to Fedspeak

The greenback lost further momentum on Wednesday as the press conference by president-elect Donald Trump failed to ignite a more lasting upside feeling around the buck, giving scant details of his probable policies.

Apart from the broad-based USD-selling, CAD is also deriving support from the recovery in crude oil prices, as the barrel of West Texas Intermediate is looking to extend the rebound from recent lows in the $50.70 region.

Nothing noteworthy in the Canadian docket today, whereas Import/Export Prices and Initial Claims are expected in the US along with speeches by Chicago Fed C.Evans (voter, dovish), Philly Fed P.Harker (voter, hawkish), Atlanta Fed D.Lockhart (centrist), St.Louis Fed J.Bullard (centrist) and Dallas Fed R.Kaplan (voter, hawkish). Chairwoman J.Yellen is also due to speak although it won’t be on monetary policy.

USD/CAD significant levels

As of writing the pair is retreating 0.31% at 1.3128 and a breakdown of 1.3099 (200-day sma) would aim for 1.3078 (low Dec.14) and finally 1.3002 (low Oct.19). On the flip side, the initial hurdle lines up at 1.3273 (100-day sma) followed by 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3375 (20-day sma).