USD/CAD upside lost momentum near 1.3380, CPI eyed

The greenback is trading on a firm note today, lifting USD/CAD to fresh tops near 1.3380 although losing some traction soon afterwards

USD/CAD attention to CPI, US data

The greenback’s recovery is extending for the second consecutive day so far, although gains in spot appears so far capped around recent highs near 1.3380.

In the meantime, CAD continues to suffer the persistent weakness around crude oil prices, with the barrel of West Texas Intermediate hovering over the $48.00 mark.

In addition, yields in the US money markets have rebounded from recent lows and have also given extra legs to the buck. The 10-year reference has bounced off the 2.37% region and is currently above 2.43%.

Later in the session, Canadian inflation figures gauged by the CPI are due, while Durable Goods Orders, advanced Manufacturing PMI for the month of March and speeches by Chicago Fed C.Evans (voter, dovish), New York Fed W.Dudley (permanent voter, centrist) and San Francisco Fed J.Williams (2018 voter, centrist) are all due south of the border.

USD/CAD significant levels

As of writing the pair is up 0.05% at 1.3359 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 1.3316 (low Mar.23) followed by 1.3297 (100-day sma) and finally 1.3262 (low Mar.21).