USD/CAD hits 7-week lows under 1.2600
- CAD, the biggest gainer of the US session while greenback remains weak.
- USD/CAD falls to test 1.2600 on the back of higher crude oil prices and risk appetite.
The Canadian Dollar rose across the boar during the US session. Against the US Dollar reached fresh monthly highs supported by a positive tone around the loonie and higher crude oil prices. US data failed to limit the slide of USD/CAD.
The pair just dropped to 1.2598, the lowest since February 20. Afterward rebounded modestly and it was trading at 1.2620/25, down 75 pips for the day so far and 200 pips below yesterday’s highs.
The rally of the loonie is being supported by crude oil prices and by risk appetite. The WTI barrel was up almost 3% while on Wall Street, the DOW JONES was rising 2.10% and the NASDAQ 1.80%.
Earlier today, economic data from the US showed a higher-than-expected rise in the PPI index during March. The greenback rose only for a few minutes. In Canada, housing data showed mix numbers. Regarding data, attention in the US turns to CPI and FOMC minutes to be released on Wednesday.
Technical levels
To the upside, resistance levels might be located at 1.2670 (Asian session low), 1.2705/10 (Apr 10 high) and 1.2730 (Apr 6 low). On the downside, the area around 1.2600 is the immediate support followed by 1.2585 and 1.2555.