USD/CAD finds support at 1.2430

FXStreet (Edinburgh) - The offered tone in the greenback has intensified during the European evening, dragging USD/CAD to session lows around 1.2430.

USD/CAD weaker on dollar, risk-on

The sentiment towards the risk appetite has returned to the markets today, triggering a correction lower in spot soon after hitting multi-week tops around 1.2540. Mixed results from the US docket - with Initial Claims and Pending Home Sales running in opposite directions - plus a narrower current account deficit in Canada during the first quarter plotted against further upside in the pair.

Looking to Friday’s docket, all the attention will be on the second revision of the USD GDP Annualized during Q1, followed by the final April’s Consumer Sentiment gauge by the Reuters/Michigan index.

USD/CAD key levels

At the moment the pair is down 0.17% at 1.2431 with the next support at 1.2400 (psychological level) followed by 1.2396 (low May 27) and finally 1.2304 (low May 26). On the upside, a surpass of 1.2540 (high May 28) would open the door to 1.2522 (high Aprl.7) and then 1.2555 (low Apr.13).