USD/CAD bid around 1.2350 ahead of US data

• Gains so far stalled around 1.2360.
• USD strength pushes spot higher.
• US PCE, FOMC, payrolls to drive the pair ahead.

The better sentiment around the greenback is driving the upbeat mood around USD/CAD on Monday, which remains in the upper end of the daily range near 1.2350.

USD/CAD attention to US data releases

The pair is so far reverting part of last week’s losses, regaining upside momentum after dropping to fresh 4- month lows in sub-1.2300 levels seen on Thursday 25.

The sharp sell off in the greenback in combination with NAFTA jitters have plotted against any attempt of recovery in past weeks, motivating spot to attempt a rebound from current levels.

In the US data space, US consumer prices tracked by the PCE during the month of December are due next followed by personal income/spending during the same month.

In Canada, the next relevant event will be November’s GDP figures, to be released on Friday.

USD/CAD significant levels

As of writing the index is up 0.30% at 1.2346 facing the next up barrier at 1.2394 (high Jan.25) seconded by 1.2402 (10-day sma) and finally 1.2445 (21-day sma). On the downside, a breakdown of 1.2281 (low Jan.25) would open the door to 1.2119 (low Sep.15 2017) and then 1.2059 (2017 low Sep.8).