USD/CAD is extending Tuesday’s sharp squeeze higher from the 1.2820 area. Economists at Scotiabank note that the pair could reach the 1.30 level on a break past 1.2950.

USD gains unlikely to extend much above the 1.30 area

“Gains through the 20s target intraday strength to 1.2950 and, above here, spot would have a free run at 1.30+ again. We still see limited scope for USD gains to extend much above the 1.30 area, however.”

“Intraday support is 1.2865 and 1.2820.”