USD/CAD consolidating above 1.2500

FXStreet (Edinburgh) - The greenback keeps its gains vs. its Canadian counterpart at the end of NA session on Wednesday, with USD/CAD navigating the low-1.2500s.

USD/CAD focus on BoC

After bottoming out around 1.2470 in the European afternoon, spot picked up pace and regained the 1.2500 mark. The Canadian dollar accelerated its depreciation after the EIA reported that crude oil inventories increased by 8.2 million barrels in the week ended on March 20th, lifting the pair to session highs around 1.2540.

The pair will remain under pressure however, as BoC’s Deputy Governor T. Lane will give a speech in less than an hour, ahead of tomorrow’s speech by Governor S.Poloz.

USD/CAD relevant levels

The pair is now up 0.21% at 1.2520 facing the next hurdle at 1.2546 (high Mar.24) followed by 1.2593 (21-d MA) and then 1.2600 (psychological level). On the flip side, a breakdown of 1.2428 (low Mar.24) would aim for 1.2415 (cloud top) and then 1.2407 (low Mar.4).

What's next? A shy EUR/USD remains below 1.1000

The EUR/USD tested the 1.1000 again on Wednesday as investors digested weaker than expected US data plus a solid German IFO data. However, the movement was weak and the pair returned below the 1.1000 for the second straight session.
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