USD/CAD tumbles to multi-day lows sub-1.3300
- Spot slips backs below the 1.3300 handle, 3-week lows.
- Focus remains on yields, risk, crude oil dynamics.
- FOMC minutes next of relevance tomorrow.
The Canadian Dollar is trading on a firm note vs. its American peer in the second half of the week and is now pushing USD/CAD to fresh 3-week lows in the sub-1.3300 region.
USD/CAD attention on FOMC minutes, WTI
CAD has been gathering further traction pari passu with higher crude oil prices, with the West Texas Intermediate surpassing the $63.00 mark per barrel, levels last seen in early November 2018.
In addition yields in the US and Canadian money markets have turned more neutral as of late, removing previous support for the greenback, all amidst the moderate pick up in the sentiment around the risk-complex.
Data wise this week, the attention will remain on the FOMC minutes due tomorrow ahead of the BoC’s Monetary Policy Report on April 15.
What to look for in CAD
CAD keeps looking to the broad risk-appetite trends and crude oil dynamics as the main drivers of the price action in the near term, as speculations of further tightening by the Bank of Canada appear somewhat mitigated. In addition, further progress in the US-China trade talks should add to the view of a stronger CAD.
USD/CAD significant levels
As of writing the pair is retreating 0.15% at 1.3293 and a breach of 1.3280 (low Mar.19) would aim for 1.3223 (50% Fibo of the October-December up move) and then 1.3192 (200-day SMA). On the other hand, the next up barrier emerges at 1.3402 (high Apr.5) followed by 1.3450 (high Mar.28) and finally 1.3467 (high Mar.7).