USD/CAD: looking bullish to 1.3280

USD/CAD has been on the bid, for the most part, this week so far, although the bulls have met a road block at aforementioned highs through the 1.32 handle. 

Markets have sidelined Trump for the time being and in the absence of economic data, attention reverted back to Central Banks and the hawkish comments from Fed voter Harker have renewed the focus on relative central bank policy and the broader USD gains have been weighing on oil prices, with WTI down to $51.45 resulting in a fresh two-week low for the CAD. We will have more on oil soon with the inventories data.

Data wise, we had the US JOLTS job openings that fell from a downwardly revised 5505 to 5501 in December (vs 5580 expected). Quitters fell 98k to 2,979k, the rate down  to 2.0% from 2.1%.The trade balance was positive and improved in Dec from -$45.7bn to -$44.3bn (-$45.0bn expected). Exports surged 2.7% while imports rose 1.5%. For the week ahead, BoC's Deputy Governor Schembri is speaking on Thursday. 

Market wrap: volatility higher - Westpac

USD/CAD levels

Analysts at Scotiabank expect USD/CAD short-term technicals to remain bullish with USD/CAD surging to a fresh two-week high, clearing the 200 day MA (1.3163, with a rise back toward the lower bound of the ascending trend channel from May 2016. "Momentum signals have turned modestly bullish and DMI’s appear poised to confirm a shift in the balance of risk. Resistance appears limited ahead of 1.3280."