USD/CAD flirting with tops near 1.3080, BoC eyed

It seems the greenback has recovered the smile on Wednesday, now lifting USD/CAD to the area of daily highs around 1.3080.

USD/CAD attention to BoC

After bottoming out in fresh 3-month lows near the psychological support at 1.3000 the figure on Tuesday, spot has managed to revert part of the recent bearish note and is now on its way to challenge the 1.3100 handle backed by a sustained bid tone surrounding the buck.

On another direction, CAD stayed mostly apathetic to crude oil dynamics in light of the broader consolidative pattern in the West Texas Intermediate, with the barrel still sidelined in the mid-$52.00s ahead of the weekly report on US crude supplies by the API due later today.

Later in the session, US December’s CPI and Industrial Production are due followed by the BoC interest rate decision and speeches by Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen, all preceding the Fed’s Beige Book.

USD/CAD significant levels

As of writing the pair is gaining 0.25% at 1.3075 facing the initial hurdle at 1.3191 (high Jan.16) followed by 1.3275 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop). On the flip side, a breach of 1.3016 (low Jan.17) would open the door to  1.3002 (low Oct.19) and finally 1.2996 (low Sep.22).