USD/CAD flirting with 1.3200, oil drops

The greenback has recovered the smile today, now sending USD/CAD to print fresh tops in the boundaries of the 1.3200 handle.

USD/CAD propped up by USD buying

USD has picked up extra pace following President M.Draghi’s press conference at today’s ECB meeting, advancing to fresh tops beyond the 98.00 mark when measured by the US Dollar Index (DXY).

In addition, crude oil prices are extending the daily decline, sending the barrel of West Texas Intermediate back below the $51.00 mark and thus removing support from CAD.

Data wise in the US docket, the Philly Fed manufacturing index has surprised to the upside, rising to 9.7 for the current month. Further data saw Initial Claims rising to 260K WoW, taking the 4-Week Average to 251.75K from 249.50K.

Later in the session US Existing Home Sales are also due ahead of the speech by NY Fed W.Dudley (permanent voter, neutral).

USD/CAD significant levels

As of writing the pair is up 0.47% at 1.3175 with the next hurdle at 1.3314 (high Oct.7) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a breakdown of 1.3050 (low Oct.18) would open the door to 1.3026 (100-day sma) and then 1.2996 (low Sep.22).