Back
20 Apr 2015
USD/CAD deep in red circa 1.22
FXStreet (Mumbai) - The US dollar bashing continues by its Canadian rival at the start of this week, keeping USD/CAD near session lower around 1.22 barrier, as the loonie remains boosted following last week’s Bank of Canada (BOC) decision and impressive Canadian macro data.
Stronger CAD pushes USD/CAD lower
Currently, the USD/CAD trades lower by -0.38% at 1.2201, recovering somewhat from session lows at 1.2193. The USD/CAD pair remains pressured largely on broad CAD strength as the Canadian dollar continues to ride higher on BOC optimism and stronger than expected macro data.
Canada’s inflation unexpectedly accelerated to 1.2% in March. The BoC's year-on-year core CPI, which excludes eight volatile components, jumped to 2.4%, marking the quickest pace in over six years. While, the biggest mover last week was the BoC's announcement on Wednesday that the interest rate would remain unchanged at 0.75%.
Moreover, a solid pull back in crude prices with US benchmark around USD 58/ barrel continues to boost the Canadian dollar, dragging USD/CAD lower.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2244 levels and above which it could extend gains 1.2273 levels. To the downside immediate support might be located at 1.2139 levels, below that at 1.2100 levels.
Stronger CAD pushes USD/CAD lower
Currently, the USD/CAD trades lower by -0.38% at 1.2201, recovering somewhat from session lows at 1.2193. The USD/CAD pair remains pressured largely on broad CAD strength as the Canadian dollar continues to ride higher on BOC optimism and stronger than expected macro data.
Canada’s inflation unexpectedly accelerated to 1.2% in March. The BoC's year-on-year core CPI, which excludes eight volatile components, jumped to 2.4%, marking the quickest pace in over six years. While, the biggest mover last week was the BoC's announcement on Wednesday that the interest rate would remain unchanged at 0.75%.
Moreover, a solid pull back in crude prices with US benchmark around USD 58/ barrel continues to boost the Canadian dollar, dragging USD/CAD lower.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2244 levels and above which it could extend gains 1.2273 levels. To the downside immediate support might be located at 1.2139 levels, below that at 1.2100 levels.