USD/CAD clinches highs near 1.3350 on US PCE, BoC eyed

The greenback is extending its upside momentum vs. its Canadian peer on Wednesday, sending USD/CAD to test fresh daily tops in the mid-1.3300s.

USD/CAD now looks to US ISM, BoC

The pair met extra upside pressure after US inflation figures tracked by the Core PCE rose at a monthly 0.3% during January, surpassing prior surveys. Over the last twelve months, Core PCE rose 1.7% vs. estimates for a 1.8% gain.

Further US data showed Personal Income expanding 0.4% MoM during last month and Personal Spending rising 0.2%, missing forecasts (0.3%) and down from December’s 0.5% advance.

In Canada, the Current Account deficit shrunk to $10.7 billion during the October-December period, although it was short of initial estimates for a $9.8 billion deficit.

Still in the US, Markit’s Manufacturing PMI is due followed by the ISM Manufacturing and the weekly report on crude inventories. Back to Canada, the BoC is expected to leave its monetary status quo unchanged at today’s meeting.

Market bets for a Fed move later this month keep fuelling the upside bias in US yields, widening the spread vs. their peers and thus sustaining the upbeat mood in the buck.

USD/CAD significant levels

As of writing the pair is up 0.22% at 1.3327 and a breakout of 1.3346 (high Mar.1) would aim for 1.3388 (high Jan.20) and finally 1.3575 (23.6% Fibo of the 2016 drop). On the flip side, the immediate support lines up at 1.3280 (100-day sma) ahead of 1.3227 (55-day sma) and then 1.3151 (200-day sma).