USD/CAD tumbles to lows near 1.3300, FOMC on sight

The greenback is now losing further ground vs. its main rivals, sending USD/CAD to test fresh lows in the 1.3300 neighbourhood.

USD/CAD weaker ahead of FOMC

Spot met increasing selling pressure today, sinking to fresh 3-week lows in the vicinity of the key support at 1.3300 the figure as the offered bias around the buck has intensified ahead of the release of the FOMC minutes.

Collaborating with the downside, crude oil prices remain on a firm note and the barrel of West Texas Intermediate is approaching the $53.00 mark, reverting at the same time part of yesterday’s retracement and adding extra support to CAD.

Later in the NA session, the FOMC minutes are expected to come in on the hawkish side, while traders will also remain vigilant on the weekly report on US crude stockpiles by the API.

Adding to CAD resilience, the latest CFTC report showed speculative net shorts have decreased to levels last seen in late September during the week ended on December 27.

USD/CAD significant levels

As of writing the pair is losing 0.83% at 1.3316 facing the next support at 1.3300 (low Jan.4) ahead of 1.3265 (low Dec.15) and then 1.3255 (100-day sma). On the upside, a surpass of 1.3466 (high Jan.3) would aim for 1.3575 (50% Fibo of the 2016 drop) and finally 1.3601 (high Dec.28).