Back
2 Jul 2014
USD/CAD flat near 1.0630
FXStreet (Edinburgh) - The CAD strength remains alive on Wednesday, despite the USD/CAD now advancing marginally around 1.0630.
USD/CAD extends the decline
Spot continues its march south at the beginning of July, trading in levels last seen in early January around 1.0630, and extending the broader correction from March’s peaks near the 1.1300 handle. Canadian data releases are scarce ahead in the week although traders will focus on the US employment figures as the main catalyst for price action. “The combination of higher inflation and household debt levels suggest that the BoC will be forced to hiking rates before the Fed. As this expectation washes over the market, we expect investors to be squeezed out of their CAD shorts. We have revised our year end USD/CAD forecast from USD/CAD1.08 to 1.06”, assessed Jane Foley, Senior Currency Strategist at Rabobank.
USD/CAD levels to consider
At the moment the pair is up just 0.03% at 1.0635 with the next resistance at 1.0762 (high Jun.23) ahead of 1.0792 (200-d MA) and then 1.0898 (high Jun.18). On the downside, a break below 1.0601 (61.8% of 1.0182-1.1279) would aim for 1.0589 (2014 low Jan.2) and finally 1.0582 (low Dec.23).
USD/CAD extends the decline
Spot continues its march south at the beginning of July, trading in levels last seen in early January around 1.0630, and extending the broader correction from March’s peaks near the 1.1300 handle. Canadian data releases are scarce ahead in the week although traders will focus on the US employment figures as the main catalyst for price action. “The combination of higher inflation and household debt levels suggest that the BoC will be forced to hiking rates before the Fed. As this expectation washes over the market, we expect investors to be squeezed out of their CAD shorts. We have revised our year end USD/CAD forecast from USD/CAD1.08 to 1.06”, assessed Jane Foley, Senior Currency Strategist at Rabobank.
USD/CAD levels to consider
At the moment the pair is up just 0.03% at 1.0635 with the next resistance at 1.0762 (high Jun.23) ahead of 1.0792 (200-d MA) and then 1.0898 (high Jun.18). On the downside, a break below 1.0601 (61.8% of 1.0182-1.1279) would aim for 1.0589 (2014 low Jan.2) and finally 1.0582 (low Dec.23).