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USD/CAD oscillates above 1.2500

FXStreet (Córdoba) - USD/CAD fell to the 1.2505 area only to quickly bounce as the loonie continues to track oil prices moves.

USD/CAD pulled back from a high of 1.2579 scored during the European session and bottomed out at 1.2507 before the 50-hour SMA offered support. The pair is currently trading at the 1.2540 area, virtually unchanged on the day as oil steadies above $52 a barrel.

In the data front, Canadian building permits decreased 0.9% to 6.11 billion Canadian dollars in February, according to Statistics Canada. Market consensus was for an advance of 5.0%.

USD/CAD short-term outlook


“We see downside potential in the high 1.24 area near-term; in fact our fair value estimate suggests funds should be trading at 1.2460 at the moment, all else being equal. A push to near or below this area would likely see dip buyers re-enter especially ahead of tomorrow's Canadian jobs number, however”, said the TD Securities team. “While notoriously volatile we expect jobs to be weak at -10k (market: flat)”.

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