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USD/CAD challenges 1.2500

FXStreet (Edinburgh) - The greenback is losing the grip vs. its Canadian counterpart at the beginning of the week, taking USD/CAD to the vicinity of the key support at 1.2500.

USD/CAD deflating after Payrolls

The positive effects on the USD of the recent upbeat Payrolls numbers seem to be wearing thin on Monday, with spot deflating from post-NFP tops in the mid-1.2500s to the current 1.2510/00 band. The pair remains directionless following multi-year peaks in the 1.2800 neighbourhood posted last month, with the USD dynamics and the recovery in the crude oil prices as the main drivers of the price action.

In the data space, January’s Housing Starts in Canada (184K YoY exp.) and the US Labour Market Conditions Index will take centre stage.

USD/CAD levels to consider

At the moment the pair is retreating 0.16% at 1.2503 with the next support at 1.2394 (low Feb.5) followed by 1.2390 (low Feb.4) and then 1.2375 (low Feb.6). On the other hand, a surpass of 1.2546 (high Feb.6) would aim for 1.2585 (high Feb.5) and finally 1.2591 (high Feb.4).

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