FXStreet (Edinburgh) – The greenback is now picking up pace vs. its Canadian neighbour, pushing USD/CAD to daily peaks in the 1.2580/90 area.
USD/CAD testing 2-month peaks
The pair is advancing for the second consecutive session so far, managing to clinch the 1.2600 area, last seen in early April. The re-emergence of the bid tone around the US dollar in recent weeks have prompted spot to break above the previous consolidation pattern around 1.2300.
On the opposite side, the recent softer tone in some Canadian key indicators has rang alarms amongst traders regarding the possibility of another rate cut by the BoC, weighing on CAD-sentiment.
USD/CAD key levels
At the moment the pair is up 0.33% at 1.2582 with the initial hurdle at 1.2635 (high Jul.2) ahead of 1.2646 (high Apr.13) and finally 1.2666 (high Apr.10). On the other hand, a breakdown of 1.2537 (low Jul.3) would open the door to 1.2487 (low Jul.1) and then 1.2362 (low Jun.30).
(Market News Provided by FXstreet)