USD/CAD stays depressed around 1.3330

The demand for the greenback remains subdued at the beginning of the week, taking USD/CAD to the lower bound of the range in the 1.3330/20 band.

USD/CAD weaker post-‘Trumpcare’

The selling pressure around the buck has picked up extra pace after Hose Republican rejected the American Health Care Act (‘Trumpcare’) at last Friday’s voting, sparking a wave of selling interest around the buck.

USD remains on the defensive on Monday as Trump’s initial ‘reflation trade’ keeps losing momentum while the future implementation of significant fiscal reforms has now became dubious.

In the meantime, CAD remains driven by US-CA policy divergence (mainly reflected in the 2-year yield spread differential) and crude oil dynamics albeit in a secondary role.

According to latest CFTC report, CAD speculative longs have decreased dramatically during the week ended on March 21, taking the currency to the net short territory for the first time since January 17.

Nothing expected data wise today, with only Chicago Fed C.Evans (voter, dovish) due to speak later in the NA session.

USD/CAD significant levels

As of writing the pair is losing 0.34% at 1.3331 and a break below 1.3313 (low Mar.23) would aim for 1.3297 (100-day sma) and finally 1.3262 (low Mar.21). On the other hand, the initial hurdle lines up at 1.3387 (high Mar.22) followed by 1.3496 (high Mar.14) and then 1.3536 (2017 high Mar.9).