10 Jul 2014
USD/CAD keeps highs post-data
FXStreet (Edinburgh) - The greenback is picking up pace against its neighbour on Thursday, pushing the USD/CAD to session highs in the 1.0675/80 band so far.
USD/CAD stronger on risk aversion
A generalized sentiment towards the risk-off trade seems to prevail today, helping spot to bounce off the area of 1.0640. In the data front, US Initial Claims dropped to 304K in the week ended on July 4th vs. 316K forecasted and down from 315K in the previous week; in addition, Canadian New Housing Price index rose 0.1%, missing estimates for a 0.2% gain. “We believe employment will fall short of market expectations tomorrow, hence, we see risk for an upside move in funds from current levels, extending into the mid 1.07 area ahead of the BoC FAD next week”, signalled Shaun Osborne, FX Strategist at TD Securities.
USD/CAD key levels
The pair is now advancing 0.21% at 1.0673 facing the next hurdle at 1.0694 (high Jul.8) ahead of 1.0762 (high Jun.23) and then 1.0806 (200-d MA). On the downside, a break below 1.0620 (low Jul.3) would open the door to 1.0601 (61.8% of 1.0182-1.1279) and finally 1.0589 (2014 low Jan.2).
USD/CAD stronger on risk aversion
A generalized sentiment towards the risk-off trade seems to prevail today, helping spot to bounce off the area of 1.0640. In the data front, US Initial Claims dropped to 304K in the week ended on July 4th vs. 316K forecasted and down from 315K in the previous week; in addition, Canadian New Housing Price index rose 0.1%, missing estimates for a 0.2% gain. “We believe employment will fall short of market expectations tomorrow, hence, we see risk for an upside move in funds from current levels, extending into the mid 1.07 area ahead of the BoC FAD next week”, signalled Shaun Osborne, FX Strategist at TD Securities.
USD/CAD key levels
The pair is now advancing 0.21% at 1.0673 facing the next hurdle at 1.0694 (high Jul.8) ahead of 1.0762 (high Jun.23) and then 1.0806 (200-d MA). On the downside, a break below 1.0620 (low Jul.3) would open the door to 1.0601 (61.8% of 1.0182-1.1279) and finally 1.0589 (2014 low Jan.2).