USD/CAD weaker, breaches below 1.2700

USD/CAD has intensified its downside against a backdrop of a generalized bearish sentiment surrounding the greenback.

USD/CAD focus on oil

Spot has retreated to 5-week lows as the selling pressure around USD remains unabated.

Collaborating with the downside, CAD is deriving extra support from buoyant crude oil prices, with the barrel of West Texas Intermediate managing to break above the $51.00 mark, levels last seen in October 2015.

On the Canadian data front, Housing Starts have come in at 188.6K in May, missing estimates at 190K and down from April’s 191.4K. Next on tap will be Building Permits, all ahead of the speech by BOC’s S.Poloz due tomorrow.

USD/CAD significant levels

As of writing the pair is down 0.52% at 1.2671 facing the next support at 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3). On the flip side, a breakout of 1.2906 (55-day sma) would aim for 1.2989 (20-day sma) and finally 1.3145 (high May 30).