USD/CAD in fresh 4-week tops around 1.2570

• Spot trades higher around 1.2570.
• USD-buying behind the up move.
• US trade deficit

The greenback remains on the positive footing vs. its Canadian neighbor during the first half of the week and is now pushing USD/CAD to the area of 1.2570, or fresh multi-week peaks.

USD/CAD bolstered by USD-buying

Spot is up for the third consecutive session today, extending the rebound to fresh 4-week peaks around 1.2570 region and always on the back of the bid tone surrounding the US Dollar.

The generalized risk-off sentiment prevailing in the global markets keeps weighing on the Canadian Dollar and crude oil so far today, all collaborating with the moderate rebound in the pair.

In the data space, US trade deficit widened more than expected to $53.1 billion in December. In the same line, Canadian deficit came in at $3.19 billion from November’s $2.71 billion. Later in the session, St. Louis Fed J.Bullard (2019 voter, neutral) is due to speak along with the release of December’s JOLTs job openings and the Ivey PMI.

USD/CAD significant levels

As of writing the index is gaining 0.15% at 1.2557 facing the immediate up barrier at 1.2591 (high Jan.11) followed by 1.2604 (55-day sma) Jan.30) and finally 1.2722 (38.2% Fibo of the 2017 drop). On the other hand, a breach of 1.2469 (23.6% Fibo of the 217 drop) would open the door to 1.2422 (21-day sma) and then 1.2381 (10-day sma).