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31 Mar 2014
USD/CAD testing 1.1000 on data
FXStreet (Edinburgh) - The Canadian dollar is now gathering pace against its neighbour on Monday, dragging the USD/CAD to test the key barrier at 1.1000.
USD/CAD weaker after data, Yellen
Spot is extending last week’s deep pullback, testing last Friday’s lows near 1.1000 the figure after Canadian GDP figures surprised to the upside, expanding at a monthly pace of 0.5% vs. forecasts for 0.4%. Next on tap of note will be a speech by Chairwoman J.Yellen. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, the pair “is adopting a slighter better offered tone as our session gets underway but, with the overhang of CAD short positions reduced, some key data releases ahead and USD-Canada spreads in the short end and belly of the curve still moving towards more USD-supportive levels, we look for limited USD losses and good support near 1.10”.
USD/CAD levels to watch
The pair is now losing 0.45% at 1.1010 with the next support at 1.1001 (low Mar.28) followed by 1.0962 (Up tL from 1.0271). On the flip side, a breakout of 1.1061 (daily cloud top) would aim for 1.1106 (high Mar.27) and finally 1.1140 (daily Kijun).
USD/CAD weaker after data, Yellen
Spot is extending last week’s deep pullback, testing last Friday’s lows near 1.1000 the figure after Canadian GDP figures surprised to the upside, expanding at a monthly pace of 0.5% vs. forecasts for 0.4%. Next on tap of note will be a speech by Chairwoman J.Yellen. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, the pair “is adopting a slighter better offered tone as our session gets underway but, with the overhang of CAD short positions reduced, some key data releases ahead and USD-Canada spreads in the short end and belly of the curve still moving towards more USD-supportive levels, we look for limited USD losses and good support near 1.10”.
USD/CAD levels to watch
The pair is now losing 0.45% at 1.1010 with the next support at 1.1001 (low Mar.28) followed by 1.0962 (Up tL from 1.0271). On the flip side, a breakout of 1.1061 (daily cloud top) would aim for 1.1106 (high Mar.27) and finally 1.1140 (daily Kijun).