USD/CAD keeps highs near 1.3300, focus on EIA

The persistent bid tone around the greenback is now lifting USD/CAD to the upper end of the range near 1.3300 the figure.

USD/CAD stronger on USD, oil drop

Collaborating with the pair’s upside, CAD weakness is also fuelled by the weekly correction lower in crude oil prices, now dragging the West Texas Intermediate back below the critical $50.00 barrier after the API reported late on Wednesday the largest increase in US crude stockpiles in the last six months, reaching 2.7 million barrels.

In the meantime, the USD rally remains well and sound, pushing the US Dollar Index (DXY) to test multi-month tops in the boundaries of the 98.00 mark, always backed by speculations on a rate hike by the Federal Reserve by year-end.

Later in the day, the usual weekly report on US labour market is due along with Export/Import Prices and the EIA report on crude oil inventories. In addition, Philly Fed P.Harker (2017 voter, hawkish) is due to speak on Economic Outlook, keeping the USD in centre stage.

USD/CAD significant levels

As of writing the pair is advancing 0.10% at 1.3289 facing the next hurdle at 1.3314 (high Oct.7) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a breach of 1.3195 (200-day sma) would open the door to 1.2996 (low Sep.22) and then 1.2818 (low Sep.7).