USD/CAD tumbles below 1.2600 to fresh 7-week lows

• CAD soars as crude oil prices rally to multi-year highs. 
• US Dollar remains weak after CPI data and ahead of FOMC minutes. 

The USD/CAD pair broke yesterday’s low and accelerated the decline under 1.2600. It reached a fresh 7-week low at 1.2543 and then rebounded modestly. As of writing was trading at 1.2570/75, headed toward the sixth daily loss out of the last seven days. 

The Canadian Dollar received a boost from a rally in crude oil prices. The WTI rose further on reports that the Saudi Air Defence Forces intercepted a rocket over Riyadh. The price rose above $67.00 a barrel to the highest level since 2014. 

The greenback remains weak ahead of the release of the FOMC minutes from the latest meeting at which rose the Fed Funds rate by 25bp.  US inflation data released today showed that the CPI dropped 0.1% in March against expectations of a flat reading. The US dollar continues to move with a bearish bias, falling particularly against the yen and European currencies.

USD/CAD Technical levels 

If the pair drops further, support levels might lie at 1.2545/40 (Apr 11 low), 1.2520 and 1.2500. To the upside, immediate resistance is seen at 1.2585 (Apr 10 low), followed by 1.2620 (Apr 11 high) and 1.2675.