USD/CAD pushes higher to 2-month peaks, 1.30 closer

• The pair moves to session highs around 1.2980 today.
• The greenback remains well bid across the board.
• Trump’s decision on Iran nuclear deal grabs all the attention.

The greenback keeps the solid pace intact vs. its rivals today and is now lifting USD/CAD to fresh 2-month highs in the 1.2980/85 band.

USD/CAD focused on Trump’s decision

The pair is extending the upside for the second session in a row on Tuesday, at the same time breaking above the consolidative multi-week theme that has been in play since late April and refocusing on the psychological handle at 1.3000 the figure.

In the meantime, the NAFTA talks are set to resume this week (and a positive outcome appears likely), while markets continue to speculate over the likeliness of a rate hike by the Bank of Canada at the July and September meetings, all expected to lend oxygen to CAD.

Further out, US and Canadian money markets remain sidelined, reinforcing the recent rangebound stand in spot.

Looking ahead, Trump’s decision on the Iranian nuclear programme is expected later in the day and carries the potential to be a key driver for the buck in the very near term, at least.

USD/CAD significant levels

As of writing the index is gaining 0.74% at 1.2976 and a breakout of 1.3002 (high Mar.7) would open the door to 1.3126 (2018 high Mar.7) and finally 1.3132 (61.8% Fibo of the 2017 drop). On the other hand, the next support lines up at 1.2927 (50% Fibo of the 2017 drop) seconded by 1.2866 (10-day sma) and then 1.2801 (low May 2).