USD/CAD in daily highs near 1.2830 ahead of US,CA data

• Spot supported around 1.2800 (10-day sma).
• Upside so far limited near 1.2930 (tops and Fibo retracement).
• US, CA key data next on tap.

The greenback is firmer vs. its Canadian neighbor at the end of the week and is now helping USD/CAD to advance to session tops in the 1.2825/30 band.

USD/CAD attention to data

After two consecutive daily pullbacks, the pair has now recovered the smile and managed to bounce off weekly lows in the 1.2800 neighbourhood, coincident as well with the 10-day sma.

In the meantime, US-CA yield spread differentials, particularly in the shorter end of the curve, continue to drive the sentiment around the pair in detriment of crude oil dynamics. The spread have now returned to the 20-21 bps after dropping to negative figures in September.

Ahead in the session, key US and Canadian job reports for the month of October will be the salient events seconded by US factory orders in September and the always-relevant ISM non-manufacturing.

 USD/CAD significant levels

As of writing the pair is up 0.14% at 1.2827 facing the initial hurdle at 1.2918 (high Oct.27) seconded by 1.2927 (50% Fibo of the 2017 drop) and finally 1.3003 (200-day sma). On the flip side, a breach of 1.2801 (low Nov.2) would aim for 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2648 (21-day sma).