USD/CAD upside stalled around 1.3380

The greenback has surrendered some of its initial gains vs. its Canadian peer on Wednesday, although USD/CAD keeps clinging to the upper end of the range near 1.3370 for the time being.

USD/CAD supported near 1.3260

Spot is advancing for the second consecutive session so far today, managing to revert yesterday’s deep pullback to the 1.3260 region after Canadian Retail Sales surprised to the upside during January.

The persistent selling pressure around crude oil prices keep weighing on CAD, although the poor performance from yields in the US money markets continues to cap the upside.

Fedspeak on Tuesday has reiterated the hawkish message and somewhat supported the buck, as FOMC’s E.George and L.Mester pointed for 2 more rate hikes this year as long as the current data context holds. Both members have also noted the robust health of the economy. Earlier, P.Harker has once again left the door open for an extra raise this year.

In the data space, US Existing Home Sales are due seconded by the weekly report on crude oil inventories by the EIA.

USD/CAD significant levels

As of writing the pair is up 0.16% at 1.3373 and a break above 1.3387 (high Mar.22) would expose 1.3496 (high Mar.14) and finally 1.3536 (2017 high Mar.9). On the downside, the next support lines up at 1.3299 (100-day sma) followed by 1.3262 (low Mar.21) and finally 1.3251 (50% Fibo of the January-March up move).