USD/CAD around 1.3200 following data, Fedspeak eyed

CAD remains strong today, relegating USD/CAD to the lower bound of the weekly range in the 1.3200/1.3180 band.

USD/CAD weaker after data

Spot has extended the bearish note on Friday, losing ground for the third consecutive week and returning to the sub-1.3200 area, levels last seen in mid-December.

CAD’s upside has been bolstered by the recovery in crude oil prices, with the barrel of West Texas Intermediate managing to re-visit the $54.00 mark earlier today on positive data from both API and EIA reports and auspicious news from the OPEC agreement to limit the oil output.

Adding to the bid tone surrounding CAD, today’s labour market figures showed the employment has surprised to the upside in December, while the unemployment rate stayed unchanged. Furthermore, the PMI gauged by the Ivey Institute improved to 60.8 during the same period.

Later in the session, speeches by Chicago Fed C.Evans (voter, dovish) and Richmond Fed J.Lacker (2018 voter, hawkish) should keep the attention on the buck.

USD/CAD significant levels

As of writing the pair is losing 0.12% at 1.3209 facing the next support at 1.3178 (low Jan.6) ahead of 1.3115 (2-month support line) and then 1.3078 (low Dec.14). On the upside, a breakout of 1.3311 (38.2% Fibo of the 2016 drop) would open the door to 1.3383 (20-day sma) and finally 1.3463 (high Jan.3).