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FXStreet (Edinburgh) - The selling pressure around the greenback is growing bigger in the last part of the NA session on Thursday, dragging USD/CAD to fresh lows in the 1.2160/50 band.
USD/CAD in 3-month lows
Spot is trading in levels last seen in mid-January, accelerating the weekly downside following a sharp sell off in the US Dollar Index.
Poor data releases in the US economy plus dovish comments from Fed members today have plotted against any recovery in the dollar, relegating the pair to current levels in the mid-1.2100s.
The pair will remain under pressure in light of the key inflation releases in the US and Canada on Friday. Further US data will see the Reuters/Michigan Index and the Leading Indicator by CB.
USD/CAD levels to watch
At the moment the pair is losing 1.12% at 1.2153 and a breakdown of 1.2100 (psychological level) would aim for 1.2062 (high Jan.19) and then 1.1940 (low Jan.20). On the upside, the initial hurdle lines up at 1.2350 (38.2% of 1.1565-1.2835) ahead of 1.2353 (low Feb.3) and finally 1.2400 (psychological level).