The greenback keeps the positive note vs. its Canadian peer during the first half of the week, with USD/CAD now hovering over the 1.2530/35 band.
USD/CAD flirting with multi-day tops
The pair is up for the second straight session so far today amidst a continuation of the healthy rally in the greenback.
Adding to the bid tone around the buck, both import prices and export prices rose above estimates in September, at a monthly 0.7% and 0.8%, respectively.
CAD’s source of weakness comes mostly from heightened concerns over the future of the NAFTA amidst a complicated fourth round of negotiations and the omnipresent threats from President Trump to terminate the agreement.
In the meantime, CAD keeps ignoring the rally in crude oil prices, where the West Texas Intermediate surpassed the $52.00 mark per barrel, recording at the same time fresh 3-week peaks.
Ahead in the session, September’s capacity utilization, industrial and manufacturing production are next on tap, followed by the NAHB index and TIC flows. In addition, Philly Fed P.Harker (voter, hawkish) is also due to speak.
USD/CAD significant levels
As of writing the pair is gaining 0.20% at 1.2543 facing the next up barrier at 1.2558 (high Oct.16) seconded by 1.2599 (high Oct.6) and finally 1.2664 (high Aug.31). On the downside, a drop below 1.2510 (10-day sma) would aim for 1.2431 (low Oct.12) and then 1.2253 (low Sep.22).