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USD/CAD testing highs on CAD data

FXStreet (Edinburgh) - The Canadian dollar is depreciating further vs. its fellow neighbour on Monday, pushing USD/CAD to test daily highs around 1.2540.

USD/CAD firmer on CAD release

The selling pressure around the CAD picked up pace after the manufacturing PMI measured by RBC eased to 48.7 from 51.0 during February. Back to the US calendar, Markit’s manufacturing PMI surprised investors to the upside, advancing to 55.1 in February vs. prior surveys at 54.3 and January’s print at 53.9.

Next on tap will be the more significant ISM Manufacturing, Construction Spending and speeches by B. Bernanke and Philly Fed’s Plosser.

USD/CAD relevant levels

At the moment the pair is advancing 0.21% at 1.2530 with the initial hurdle at 1.2577 (Kijun Sen) followed by 1.2600 (psychological level). On the other hand, a drop below 1.2449 (low Feb.27) would open the door to 1.2388 (low Feb.26) and then 1.2360 (low Feb.17).

USD loses steam amid US weak data; While Euro tarts up and goes up

The dollar index surged to 11-year highs in the European session; however weak economic data in the US hit the pro-dollar sentiment and now the USD is trading in the defensive. On the other hand, the Euro is fueled by not-that-bad PMI manufacturing data and it's recovering ground.
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Key events ahead – BAML

The BofA-Merrill Lynch Team previews the GDP release in Europe, Canada and Switzerland, and the rate decisions in Australia and UK.
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