USD/CAD drops further near 1.2950

The greenback continues to shed ground on Monday, now dragging USD/CAD to fresh lows in the mid-1.2900s.

USD/CAD focus on BoC, oil

The pair will surely remain exposed to the risk appetite trends following today’s inactivity in US and Canadian markets due to the Labor Day holiday.

Crude oil dynamics remain the exclusive driver for the pair’s price action, although the barrel of West Texas Intermediate seems to have found decent support near the $43.00 mark on Friday, or 3-week low.

Later in the week, the BoC will hold its monetary policy meeting ahead of Canadian key labour market figures due on Friday.

USD/CAD significant levels

As of writing the pair is losing 0.26% at 1.2954 and a break below 1.2942 (100-day sma) would expose 1.2828 (low Aug.26) and finally 1.2759 (low Aug.18). On the upside, the initial hurdle lines up at 1.3006 (55-day sma) followed by 1.3149 (high Sep.1) and then 1.3202 (high Aug.5).