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USD/CAD flirting with highs near 1.4050

FXStreet (Edinburgh) - The Canadian dollar is shedding further ground vs. the greenback today, now lifting USD/CAD to fresh highs near 1.4050.

USD/CAD focused on oil

Another soft tone in crude oil prices is adding further selling pressure to CAD and thus collaborating in the pair’s upside to the mid-1.4000s, with the barrel of West Texas Intermediate slipping back below the $31.00 handle at the time of writing.

The pair is now reverting the initial negative tone seen on Monday, coming up after testing the boundaries of the key support at the 1.3900 handle on poor US releases. Ahead in the NA session, IBD/TIPP index is due ahead of the speech by Fed’s E.George.

USD/CAD significant levels

As of writing the pair is up 0.73% at 1.4034 and a surpass of 1.4225 (20-day sma) would open the door to 1.4327 (high Jan.26) and then 1.4692 (high Jan.20). On the other hand, the immediate support lines up at 1.3877 (3-month uptrend) ahead of 1.3812 (low Jan.4) and finally 1.3552 (100-day sma).

UK construction PMI drooped in January, came in at 55.0

UK construction sector experiences growth slowdown at the start of 2016. January data pointed to a renewed slowdown in output growth across the UK construction sector. Construction PMI dropped to 55.0, down from 57.8 in December. Construction firms report lowest business confidence since December 2014
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EUR/GBP tests 0.7620 and retreats on UK PMI

A fresh bout of buying interest is seen around the EUR/GBP cross as the cable weakened further, hit badly by the awful construction PMI data from the UK.
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