USD/CAD holding steady at the week's highs ahead of US GDP
- USD, Loonie balancing against each other for now heading into US Friday GDP numbers.
- Dovish BoC helped knock the CAD lower, but Loonie bulls have recovered.
The USD/CAD is hanging around the week's highs, trading into 1.2880 as the US Dollar and the Loonie balance against each other in a week that has seen the Greenback largely gain across the board.
The pair rallied from last week's lows near 1.2530 as the US Dollar bounded against the broader FX market on the back of rising US Treasury yields, with the 10-year Treasury crossing over the key 3% yield mark. Bonds have receded somewhat, but the USD is still holding on a high note. Aiding the Greenback was a dovish turn from the Bank of Canada (BoC), and the BoC's Governor Poloz who has taken a softer tone recently with restrained oil prices hampering growth in the energy sector, a key component in Canada's economy.
The US session that lies ahead sees US preliminary quarterly GDP figures for Q1 2018, and markets are bracing an active event with the annualized GDP expected to post a gain of 2%, a decline from the previous reading of 2.9%.
USD/CAD Levels to watch
The pair's bullish trend has hesitated for now, trading into the topside of the week's range near the 1.2900 handle, and slight decline may be on the cards with support from the bottom of the current range near 1.2810 and early April's congestion zone near 1.2740, while a bullish continuation will see resistance at the week's high at 1.2897 and late March's swing highs near 1.2940.