USD/CAD tumbles to lows near 1.2520

The Canadian Dollar is extending its upside momentum vs. its American peer on Thursday, now sending USD/CAD to the area of 1.2520, or daily lows.

USD/CAD focus on Yellen

Spot came under further selling pressure today, testing fresh 3-week lows and prolonging the weekly decline for the second consecutive session so far ahead of the key Jackson Hole Symposium starting today.

CAD is deriving support from today’s upside in the Canadian 10-year yields, currently testing daily highs beyond the 1.90% handle, while eclipsing at the same time the drop in the price of the barrel of West Texas Intermediate.

In the data space, the usual weekly report on the US labour market is due next followed by July’s existing home sales. In Canada, quarterly figures for corporate profits are next on tap.

USD/CAD significant levels

As of writing the pair is retreating 0.22% at 1.2524 facing the immediate support at 1.2412 (2017 low Jul.27) seconded by 1.2199 (low Jun.10) and finally 1.2124 (low Jun.18 2015). On the flip side, a breakout of 1.2611 (21-day sma) would expose 1.2624 (10-day sma) and finally 1.2738 (23.6% Fibo of the 2017 drop).