The Canadian dollar keeps giving away earlier gains vs. the greenback, now sending USD/CAD to visit session tops above the 1.3900 handle.
USD/CAD stronger on USD, oil slump
Spot has managed to revert the offered tone that has been prevailing since overnight trading. USD strength plus the current slump in crude oil prices are hurting CAD, sending the pair higher.
In fact, the barrel of West Texas Intermediate has come back below the $30.00 mark during the European morning, shedding a big part of the recent recovery.
On the data front, the Fed’s Labor Market Conditions Index is only due in the US while Building Permits/Housing Starts are expected on the Canadian side.
USD/CAD significant levels
As of writing the pair is up 0.23% at 1.3943 with the next hurdle at 1.4103 (high Feb.3) followed by 1.4153 (20-day sma) and then 1.4327 (high Jan.26). On the downside, a break below 1.3635 (low Feb.4) would aim for 1.3575 (100-day sma) and finally 1.3161 (200-day sma).
(Market News Provided by FXstreet)