USD/CAD up smalls around 1.3340

The greenback is clinging to its daily gains vs. its Canadian counterpart on Thursday, with USD/CAD hovering over the 1.3330/35 band.

USD/CAD supported near 1.3320

The pair is looking to gather some traction after yesterday’s significant pullback to lows near 1.3320 despite the solid momentum surrounding the buck.

The sharp rebound in crude oil prices following the EIA’s weekly report on Wednesday and upbeat headlines from Libya and the OPEC deal have lent extra oxygen to CAD, prompting spot to retrace further the spike to weekly highs in the 1.3410/15 band (Wednesday).

Yield spread differential between the US and Canadian money markets saw the 2-year reference performance losing some ground in past sessions, staying in the lower bound of the range for the time being,

Later in the session, second-tier releases in Canada should leave the bulk of the attention to the US docket, where another revision of the Q4 GDP and Initial Claims are due along with speeches by by New York Fed W.Dudley (permanent voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, hawkish).

USD/CAD significant levels

As of writing the pair is up 0.05% at 1.3335 facing the next hurdle at 1.3402 (23.6% Fibo of the 2017 upside) followed by 1.3424 (high Mar.28) and then 1.3496 (high Mar.14). On the flip side, a break below 1.3319 (low Mar.27) would aim for 1.3296 (100-day sma) and finally 1.3262 (low Mar.21).