USD/CAD climbs to session tops near 1.2950

• The pair regains buying interest and advances to peaks around 1.2950.
• Important resistance emerged at Wednesday’s YTD tops at 1.3000.
• Focus is now on tariffs (Trump’s presser today) and speech by BoC’s Lane.

The selling bias around the Canadian Dollar has re-emerged in the second half of t he week and is now lifting USD/CAD to test daily highs in the 1.2940/50 band.

USD/CAD attention to Trump, BoC-speak

CAD remains entrenched into the negative territory so far this week and is now helping the pair to advance for the second consecutive session, still targeting recent peaks at the psychological 1.30 neighbourhood.

The pair stays in the limelight ahead of the upcoming press conference by President Trump, scheduled for later in the European evening/night. Trump is expected to formalize its announcement of tariffs on US imports of steel (25%) and aluminium (10%), although he could offer Mexico and Canada a 30-day exemption with the option to extend it conditioned to further progress on the NAFTA talks.

Other than the tariffs issue, CAD stays offered following the recent dovish message from the BoC at its meeting on Wednesday. That said, eyes will be on today’s speeches by Governor S.Poloz and Deputy Governor T.Lane on the central bank’s Economic Progress Report.

On the data front, Canadian Building Permits and the New Housing Price index are due. In the US, Challenger Job Cuts and weekly Initial Claims will be the only releases later today ahead of tomorrow’s more relevant Non-farm Payrolls for the month of February.

USD/CAD significant levels

As of writing the index is gaining 0.25% at 1.2944 facing the initial hurdle at 1.3001 (2018 high Mar.5) followed by 1.3132 (61.8% Fibo of the 2017 drop) and finally 1.3349 (high Jun.21 2017). On the other hand, a breakdown of 1.2861 (low Feb.6) would open the door to 1.2834 (10-da sma) and then1.2755 (38.2% Fibo of the 2017 drop).