USD/CAD keeps highs near 1.2870, US CPI eyed

The greenback is pushing higher vs. its Canadian peer on Thursday, with USD/CAD testing the area of session highs near 1.2870.

USD/CAD focus on oil, US data

Spot is now advancing for the second consecutive session amidst a solid recovery of the greenback in the global markets, managing to rebound from yesterday’s post-BoC lows near 1.2740.

Adding to the upside, CAD is tracking a correction lower in the barrel of West Texas Intermediate from Wednesday’s fresh 2016 highs around $42.40 after the EIA has reported another build up in crude inventories (+6.63 million barrels).

Next on tap will be US CPI figures along with Initial Claims. In Canada, New Housing Price index is due for the month of February.

USD/CAD significant levels 

As of writing the pair is up 0.31% at 1.2856 and a breakout of 1.3046 (20-day sma) would open the door to 1.3208 (23.6% Fibo of 1.4692-1.2750) and then 1.3219 (high Apr.5). On the flip side, the next support aligns at 1.2744 (2016 low Apr.13) followed by 1.2652 (low Jul.10 2015) and finally 1.2124 (monthly low Jun.24 2015).