USD/CAD: fresh highs on dovish Poloz, where next?

Currently, USD/CAD is trading at 1.2446, up 0.78% on the day, having posted a daily high at 1.2453 and low at 1.2335.

BOC's Poloz continues to speak: temporary factors holding down inflation will dissipate

Just ahead of Fed's Brainard's (Dove) speech on the top the hour (may not mention MP though), Fed's Bullard (Dove) has sent dovish tone out, so we can expect to see some dollar weakness ahead of Trump's tax announcements as today's main event for the greenback. 

Fed's Bullard: Current level of policy rate is appropriate given current macroeconomic data

Meanwhile, "A reminder that speculative (CFTC) gross long CAD positioning is extended at five-year highs, leaving bulls vulnerable to adjustment. The options market also appears relatively sanguine, with risk reversals pricing a remarkably low premium for protection against CAD weakness," explained analysts at Scotiabank.

USD/CAD levels

USD/CAD has broken up through 1.24 the figure and it is looking for a close above the July low at 1.2414 with eyes set on the 2016 low at 1.2461 just below the 50-day MA at 1.2464. Momentum signals are up on the 4hr chart and RSI following suit making for a moderately bullish bias. Support is now up to 1.2320.