14 Jul 2015
USD/CAD rejected at 1.2805
FXStreet (Mumbai) - The Canadian dollar trimmed losses and moved slightly away from fresh multi-month lows versus its American counterpart in the European session, bringing USD/CAD back below 1.28 handle, as traders digest the latest Iran-west nuclear deal while awaiting US macro data due later today ahead of Wednesday’s BOC monetary policy decision.
USD/CAD capped below 1.28 handle
Currently, the USD/CAD pair trades 0.38% higher at 1.2785, easing from four-month highs reached at 1.2805 in early moves. The Canadian dollar lost ground earlier today versus the US dollar following the announcement that Iran has clinched the nuclear deal, paving the way for more oil supply in the market, thereby dragging oil prices even lower. Oil is Canada’s top export product.
Moreover, the loonie remains undermined ahead of Wednesday’s Bank of Canada’s (BOC) policy decision as markets are a weighing a good possibility that the BOC will announce another rate cut of 25 basis points, as Canadian economic performance continues to disappoint and non-energy exports fail to rebound as expected.
Markets now shift attention towards a set of US data including the retail sales numbers due later today while Fed Yellen’s testimony due tomorrow will also be closely watched.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2805 (Today’s High) levels and above which it could extend gains to 1.2836 (March 15 High) levels. To the downside, immediate support might be located at 1.2733 (Today’s Low) levels and below that at 1.2689 (July 8 Low) levels.
USD/CAD capped below 1.28 handle
Currently, the USD/CAD pair trades 0.38% higher at 1.2785, easing from four-month highs reached at 1.2805 in early moves. The Canadian dollar lost ground earlier today versus the US dollar following the announcement that Iran has clinched the nuclear deal, paving the way for more oil supply in the market, thereby dragging oil prices even lower. Oil is Canada’s top export product.
Moreover, the loonie remains undermined ahead of Wednesday’s Bank of Canada’s (BOC) policy decision as markets are a weighing a good possibility that the BOC will announce another rate cut of 25 basis points, as Canadian economic performance continues to disappoint and non-energy exports fail to rebound as expected.
Markets now shift attention towards a set of US data including the retail sales numbers due later today while Fed Yellen’s testimony due tomorrow will also be closely watched.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2805 (Today’s High) levels and above which it could extend gains to 1.2836 (March 15 High) levels. To the downside, immediate support might be located at 1.2733 (Today’s Low) levels and below that at 1.2689 (July 8 Low) levels.