USD/CAD struggles for direction near 1.3030

The greenback is alternating gains with losses vs. its Canadian neighbor at the beginning of the week, with USD/CAD navigating a narrow range near 1.3030.

USD/CAD attention to US data

The pair manages to keep the trade above the psychological 1.3000 handle so far today, while market participants continue to digest Friday’s results from the US labour market.

In the meantime, spot seems to be quite comfortable in the lower bound of the recent range, challenging lows seen in October and late September 2016 in the 1.2980/1.3000 band.

Yield spreads in the US and Canadian money markets remain the main drivers behind CAD’s price action as of late, relegating crude oil dynamics to a secondary role for the time being.

The recent CAD appreciation has found extra support from speculative positioning, with net longs picking up pace to levels last since in September 20 during the week ended on January 31 according to the latest CFTC report.

Data wise, nothing scheduled in Canada today, whereas the Fed’s Labor Market Conditions Index is due along with the speech by Philly Fed P.Harker (voter, hawkish).

USD/CAD significant levels

As of writing the pair is gaining 0.04% at 1.3028 facing the next hurdle at 1.3078 (high Feb.3) followed by 1.3135 (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).