USD/CAD eases from tops, back near 1.2560 ahead of BoC

• The pair is posting decent gains in the 1.2560.
• Daily upside faltered just ahead of the key 1.2600 milestone.
• The Bank of Canada is next on the docket, expected to remain on hold.

The Canadian Dollar stays on the defensive vs. its neighbour today, taking USD/CAD to the 1.2570/60 band ahead of the key BoC meeting.

USD/CAD looks to BoC

The pair is trading with gains after two consecutive daily retracements, navigating the area of 9-week lows in the 1.2560 region for the time being.

Furthermore, spot is down for the fifth week in a row and it has shed already more than 4% since 2018 tops in the 1.3130 region recorded on March 19. The area coincides with the 61.8% Fibo retracement of  the 2017 drop.

Looking at the broader picture, CAD gained buying interest following the healthy rally in crude oil prices, the sustained climb in yields of the 2-year benchmark, expectations of a favourable outcome from the NAFTA negotiations and rising speculations on a rate hike at the July meeting.

USD/CAD significant levels

As of writing the index is gaining 0.12% at 1.2567 and a surpass of 1.2622 (200-day sma) would aim for 1.2629 (10-day sma) and finally 1.2710 (high Apr.10). On the flip side, the initial support comes in at 1.2525 (low Apr.17) followed by 1.2469 (23.6% Fibo of the 2017 drop) and then 1.2447 (low Feb.16).