17 Jun 2014
USD/CAD climbs to highs near 1.0860
FXStreet (Edinburgh) - The greenback is advancing against its neighbour on Tuesday, lifting the USD/CAD to print fresh intraday peaks around 1.0860/65.
USD/CAD focus on US data
The pair seems to have found some sort of bottom in the 1.0840/60 band, looking to consolidate the decline from recent tops around 1.0960 in early June. Moving forward, inflation figures for the month of May are due in the US docket, with Core consumer prices expected to have advanced 1.9% on a yearly basis vs. 1.8% previous, ahead of Building Permits and Housing Starts. However, the biggest event will be tomorrow’s FOMC meeting, with consensus pointing to another $10 billion taper. “On the day, we look for firms support for the USD on dips to the low 1.08 area but we will need to see spot move above 1.0880/85—through yesterday’s high—to get any sort of traction”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
As of writing the pair is up 0.13% at 1.0860 with the next resistance at 1.0922 (high Jun.10) ahead of 1.0962 (high Jun.5) and then 1.1001 (21-w MA). On the downside, a breach of 1.0814 (low May 8) would expose 1.0772 (200-d MA) and finally 1.0762 (low Jan.8).
USD/CAD focus on US data
The pair seems to have found some sort of bottom in the 1.0840/60 band, looking to consolidate the decline from recent tops around 1.0960 in early June. Moving forward, inflation figures for the month of May are due in the US docket, with Core consumer prices expected to have advanced 1.9% on a yearly basis vs. 1.8% previous, ahead of Building Permits and Housing Starts. However, the biggest event will be tomorrow’s FOMC meeting, with consensus pointing to another $10 billion taper. “On the day, we look for firms support for the USD on dips to the low 1.08 area but we will need to see spot move above 1.0880/85—through yesterday’s high—to get any sort of traction”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
As of writing the pair is up 0.13% at 1.0860 with the next resistance at 1.0922 (high Jun.10) ahead of 1.0962 (high Jun.5) and then 1.1001 (21-w MA). On the downside, a breach of 1.0814 (low May 8) would expose 1.0772 (200-d MA) and finally 1.0762 (low Jan.8).