USD/CAD upside stalled around 1.2380
- Spot climbed to fresh tops near 1.2380.
- Higher US yields, NAFTA concerns added to the upside.
- Support stays around 1.2300.
The solid pace of the greenback is now helping USD/CAD to clinch its second consecutive day with gains, this time advancing to the 1.2380 area, fresh 2-day tops.
USD/CAD focus on data, NAFTA
The pair is extending the rebound from recent lows in the 1.2280/1.2300 area seen last week, always backed by a renewed and moderate pick up in the demand for the US Dollar.
Furthermore, US-CA yield spread differentials, particularly in the shorter end of the curve keep sustaining the advance in spot. In this regard it is worth mentioning that US 2-year yields are navigating around 2.12%, levels last traded in October 2008.
Collaborating with the bull run, prices of the barrel of WTI have started the week on the defensive following recent peaks near the $67.00 mark and are now hovering the $64.80 region, losing over 1% on the day.
Data wise today, the S&P/Case-Shiller index is due later in the NA session seconded by the CB’s consumer confidence for the month of December and the weekly report by the API on US crude oil supplies. In Canada, November’s GDP figures are due on Wednesday.
USD/CAD significant levels
As of writing the index is up 0.19% at 1.2362 facing the next up barrier at 1.2395 (10-day sma) seconded by 1.2436 (21-day sma) and finally 1.2469 (23.6% Fibo of the 2017 drop). On the downside, a breakdown of 1.2281 (low Jan.25) would open the door to 1.2119 (low Sep.15 2017) and then 1.2059 (2017 low Sep.8).