USD/CAD decline finds support near 1.3050

Today’s softer tone in the greenback has dragged USD/CAD to the area of session lows near 1.3050, where it seems some buyers have turned up.

USD/CAD focus on Yellen

Spot remains on the defensive since last Friday, extending the leg lower after being rejected from last week’s tops just above 1.3200 the figure.

CAD seems to have derived some support from the recent rally in crude oil prices, although its sensitiveness to crude dynamics has lost momentum as of late. Yield spreads between US and Canadian money markets stay as the other driver for the pair’s price action, although too, it lost momentum in recent sessions.

Later in the day, Yellen’s semi-annual testimony before the Senate Banking Committee is due along with US Producer Prices, NFIB’s Optimism index and speeches by Richmond Fed J.Lacker (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, centrist) and Atlanta Fed D.Lockhart (who will step down at the end of the month).

Recent cordial meeting between PM J.Trudeau and President D.Trump yielded no major news, with Trump emphasizing the relationship between the two countries as ‘outstanding’.

USD/CAD significant levels

As of writing the pair is losing 0.11% at 1.3057 facing the next support at 1.3046 (low Feb.13) seconded by 1.3016 (low Jan.17) and then 1.2967 (low Jan.31). On the other hand, a surpass of 1.3131 (20-day sma) would aim for 1.3142 (200-day sma) and finally 1.3215 (high Feb.7).