USD/CAD off highs, returns to 1.2950

The greenback is now picking up pace vs. its Canadian peer, lifting USD/CAD to the mid-1.2900s albeit still trading in red figures.

USD/CAD focus on oil, risk appetite

Spot advanced to the vicinity of 1.2980 during overnight trade although the up moved lacked of follow through and prompted a leg lower towards the 1.2940/30 region, or session lows.

The now softer tone around crude oil prices is sending the barrel of West Texas Intermediate to the mid-$46.00s, adding further selling pressure to CAD.

On the data space, TIC flows and the NAHB index are only expected in the US calendar, while Foreign Transactions figures are due in Canada.

Regarding positioning, speculative net longs in CAD has climbed to fresh 4-week highs during the week ended on July 12, according to the latest CFTC report.

USD/CAD significant levels

As of writing the pair is retreating 0.18% at 1.2948 facing the next hurdle at 1.3139 (high Jul.11) ahead of 1.3191 (high May 24) and then 1.3312 (38.2% Fibo of the 2016 down move). On the other hand, a breach of 1.2858 (low Jul.14) would aim for 1.2827 (low Jul.4) and finally 1.2674 (low Jun.23).