USD/CAD eases from highs, near 1.3020 ahead of US data

USD/CAD remains in the lower end of the recent range for the time being, managing to keep the trade above the key 1.3000 handle.

USD/CAD looks to US data

Choppy week for the pair so far, now looking to stabilize above 1.3000 after buyers seem to have emerged around weekly lows in the 1.2970/65 region (Tuesday). Gains so far appear capped around Monday’s tops near 1.3120.

CAD stays almost exclusively driven by Fed-BoC policy divergences (reflected in US-CA 2-year yields spread) in detriment of crude oil dynamics, which have been behind the pair’s price action for most of last year.

However, CAD gains seem limited as the BoC has not ruled out further easing despite auspicious results in the domestic economy as of late, justifying its stance on the still high slack in the economy coupled with uncertainty around US-Canada trade.

Later in the NA session, US Non-farm Payrolls are seen at 175K in January, while the unemployment rate should remain unchanged at 4.7%. In addition, December’s Factory Orders, Services PMI by Markit and the ISM Non-manufacturing are also due along with the speech by Chicago Fed Charles Evans (voter, dovish).

USD/CAD significant levels

As of writing the pair is gaining 0.01% at 1.3028 facing the next hurdle at 1.3053 (high Feb.1) followed by 1.3103 (high Jan.31) and finally 1.3132 (200-day sma). On the other hand, a breach of 1.2967 (low Jan.31) would expose 1.2906 (low Sep.9 2015) and then 1.2818 (low Sep.7 2015).