4 Apr 2014
USD/CAD supported in low 1.10s
FXStreet (Edinburgh) - The USD/CAD is coming down from overnight tops beyond 1.1040 on Friday, finding decent support around 1.1015/10 so far.
USD/CAD focus on employment releases
Although US Payrolls would be the centre of attention today (200K exp.), Canada will also publish its labour market data, with the unemployment rate expected to remain unchanged at 7.0% and the employment to raise by 20K. “We remain bullish on the outlook for USDCAD in the medium term but we have to concede that the short CAD trade has lost momentum over the past week and the risk of a dip under 1.10 may be rising. We don’t think a rebound in Canadian jobs today or a push sub-1.10 spells broader relief for the CAD, however”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now retreating 0.09% at 1.1025 with the next support at 1.1001 (low Mar.28) ahead of 1.0974 (up TL Oct. low). On the upside, a breakout of 1.1078 (high Mar.28) would open the door to 1.1095 (weekly Tenkan Sen) and finally 1.1106 (high Mar.27).
USD/CAD focus on employment releases
Although US Payrolls would be the centre of attention today (200K exp.), Canada will also publish its labour market data, with the unemployment rate expected to remain unchanged at 7.0% and the employment to raise by 20K. “We remain bullish on the outlook for USDCAD in the medium term but we have to concede that the short CAD trade has lost momentum over the past week and the risk of a dip under 1.10 may be rising. We don’t think a rebound in Canadian jobs today or a push sub-1.10 spells broader relief for the CAD, however”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now retreating 0.09% at 1.1025 with the next support at 1.1001 (low Mar.28) ahead of 1.0974 (up TL Oct. low). On the upside, a breakout of 1.1078 (high Mar.28) would open the door to 1.1095 (weekly Tenkan Sen) and finally 1.1106 (high Mar.27).