USD/CAD drops to lows near 1.2840

The Canadian dollar is recovering ground vs. its American neighbour on Tuesday, sending USD/CAD to the lower band of the range around 1.2850/40.

USD/CAD weaker ahead of US CPI

The ongoing rally in crude oil prices has lifted the barrel of West Texas Intermediate to levels above the $48.00 mark during the European morning, last seen in October/November 2015, giving extra oxygen to CAD.

Ahead in the NA session, USD will take centre stage in light of the release of US inflation figures tracked by the CPI during April, Industrial and Manufacturing Production and speeches by Lockhart, Kaplan and Williams.

USD/CAD significant levels 

As of writing the pair is down 0.26% at 1.2862 and a breakdown of 1.2768 (low May 12) would open the door to 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015). On the flip side, the next hurdle lines up at 1.2967 (55-day sma) followed by 1.3015 (high May 9) and then 1.3219 (high Apr.5).