17 Jul 2014
USD/CAD deflates below 1.0740
FXStreet (Edinburgh) - The Canadian dollar is recovering some ground lost at the moment, dragging the USD/CAD back below the 1.0740 level.
USD/CAD softer post-US data
The better figures from the US labour market - with claims decreasing to 302K in the week ending on July 11th – were eclipsed by the weaker tone from the housing sector, dragging spot back to the area of 1.0740/35. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “Wednesday’s Bank of Canada events have weighed on policy expectations, lowering domestic interest rates while narrowing the US-CA 2Y spread to its lowest level since late 2011 – a level that would typically be associated with much higher levels in USDCAD”.
USD/CAD relevant levels
At the moment the pair is down 0.05% at 1.0735 with the initial support at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.06720 (low Jul.3). On the upside, a break above 1.0813 (200-d MA) would target 1.0814 (low May 8) en route 1.0831 (61.8% of 1.0962-1.0620).
USD/CAD softer post-US data
The better figures from the US labour market - with claims decreasing to 302K in the week ending on July 11th – were eclipsed by the weaker tone from the housing sector, dragging spot back to the area of 1.0740/35. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “Wednesday’s Bank of Canada events have weighed on policy expectations, lowering domestic interest rates while narrowing the US-CA 2Y spread to its lowest level since late 2011 – a level that would typically be associated with much higher levels in USDCAD”.
USD/CAD relevant levels
At the moment the pair is down 0.05% at 1.0735 with the initial support at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.06720 (low Jul.3). On the upside, a break above 1.0813 (200-d MA) would target 1.0814 (low May 8) en route 1.0831 (61.8% of 1.0962-1.0620).