USD/CAD firmer around 1.3080, FOMC eyed

The greenback has recovered the smile vs. its peers on Wednesday, now lifting USD/CAD to the upper end of the daily range near 1.3080.

USD/CAD focus on US data, FOMC

After testing fresh 4-month lows near 1.2970 on Tuesday, the pair has managed to grab buying interest and has now returned to the upper-1.3000s ahead of key releases in the US docket.

The sharp sell-off in the greenback following comments by President D.Trump on Tuesday plus auspicious results from the Canadian GDP in December helped spot to accelerate the downside to levels last seen in early September way below the 1.3000 handle.

Despite CAD’s sensitiveness to crude oil dynamics has diminished in recent weeks in favour of US-CA yields, yesterday’s sharp rebound in the price of the barrel of WTI has also collaborated with the pair’s drop.

Data wise today, the ADP report and the ISM Manufacturing should take centre stage in the US docket ahead of the FOMC meeting.

USD/CAD significant levels

As of writing the pair is gaining 0.31% at 1.3070 facing the next hurdle at 1.3094 (high Feb.1) followed by 1.3127 (200-day sma) and finally 1.3171 (high Jan.30). On the other hand, a breach of 1.2967 (low Jan.31) would expose 1.2906 (low Sep.9 2015) and then 1.2818 (low Sep.7 2015).