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6 Mar 2014
USD/CAD bounces off 1.1010
FXStreet (Edinburgh) - The USD/CAD is now picking up pace, returning to the 1.1035/40 region after bottoming out near 1.1010.
USD/CAD down from 1.1050
The pair is correcting lower from overnight peaks in the vicinity of 1.1050 as the CAD was supported by the prevailing risk trends. In the data front, Canadian Building Permits (1.0% exp.) and the Ivey PMI (53.5 exp.) would take centre in the Canadian docket, while Initial Claims and Factory Orders would be in the limelight in the US. Stephen Gallo, European Head FX Strategy at BMO, assessed, “Very recent price action in USDCAD suggests that the short-CAD covering we had been highlighting as a factor since the start of the week has been reserved until after the BoC. Our hunch is that it’s not entirely finished yet. So although we do expect very good support 1.095-1.1025, a very weak US employment report tomorrow will put the USD quickly on the defensive versus the CAD”.
USD/CAD levels to consider
As of writing the pair is losing 0.05% at 1.1031 with the immediate support at 1.1000 (psychological level) ahead of 1.0979 (daily cloud top) and finally 1.0978 (76.4% of 1.0911-1.1196). On the upside, a surpass of 1.1118 (high Feb.5) would open the door to 1.1148 (high Feb.28) and then 1.1160 (high Feb.27).
USD/CAD down from 1.1050
The pair is correcting lower from overnight peaks in the vicinity of 1.1050 as the CAD was supported by the prevailing risk trends. In the data front, Canadian Building Permits (1.0% exp.) and the Ivey PMI (53.5 exp.) would take centre in the Canadian docket, while Initial Claims and Factory Orders would be in the limelight in the US. Stephen Gallo, European Head FX Strategy at BMO, assessed, “Very recent price action in USDCAD suggests that the short-CAD covering we had been highlighting as a factor since the start of the week has been reserved until after the BoC. Our hunch is that it’s not entirely finished yet. So although we do expect very good support 1.095-1.1025, a very weak US employment report tomorrow will put the USD quickly on the defensive versus the CAD”.
USD/CAD levels to consider
As of writing the pair is losing 0.05% at 1.1031 with the immediate support at 1.1000 (psychological level) ahead of 1.0979 (daily cloud top) and finally 1.0978 (76.4% of 1.0911-1.1196). On the upside, a surpass of 1.1118 (high Feb.5) would open the door to 1.1148 (high Feb.28) and then 1.1160 (high Feb.27).