FXStreet (Edinburgh) – The Canadian dollar continues to depreciate vs. its American neighbor on Thursday, sending USD/CAD to post fresh cycle highs near 1.4140.
USD/CAD lower on oil, focus on Poloz
Another day, another drop in crude oil prices, another high in the pair. Crude oil prices remain the almost exclusive driver of the ongoing CAD weakness, helping spot to reach levels last traded over a decade ago around 1.4140.
Following a somewhat dovish tone (at least not-hawkish) from yesterday’s FOMC minutes, the next significant event for the pair will be today’s speech by Governor S.Poloz on ‘Life after Liftoff: Divergence and US Monetary Policy Normalization’. On the US docket, the only release will be Initial Claims, expected at 275K.
USD/CAD key levels
At the moment the pair is up 0.36% at 1.4133 facing the next resistance levels at 1.4166 (high Aug.22 2003) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003). On the downside, a breach of 1.3633 (3-month uptrend) would target 1.3513 (55-day sma) and then 1.3364 (100-day sma).
(Market News Provided by FXstreet)