21 Mar 2014
USD/CAD bounces off 1.1220
FXStreet (Edinburgh) - After bottoming out near 1.1220, the USD/CAD is now extending its rebound to the mid-1.12s ahead of the Canadian docket.
USD/CAD eyes key data
The pair is correcting lower from multi-year peaks around 1.1280, printed post-FOMC on Wednesday. Spot would be in the limelight during the European afternoon, as Canadian inflation figures during February (BoC 1.1% YoY exp.) and January’s retail sales are due (headline 0.7% exp.) ahead of key Fedspeak. “Our hunch is that the consensus is looking for today’s Fed speak to ‘soothe’ some of the fears instigated by Wednesday’s FOMC, so we’d be cautious about buying USDCAD 1.122-1.125 if the data are on the better side”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD levels to consider
As of writing the pair is advancing 0.04% at 1.1251 with the next resistance at 1.1300 (psychological level) ahead of 1.1669 (61.8% of 1.3066-0.9407) and then 1.1680 (high Jul.10 2009). On the flip side, a breakdown of 1.1122 (low Mar.19) would target 1.1045 (daily cloud top) and finally 1.1025 (low Mar.18).
USD/CAD eyes key data
The pair is correcting lower from multi-year peaks around 1.1280, printed post-FOMC on Wednesday. Spot would be in the limelight during the European afternoon, as Canadian inflation figures during February (BoC 1.1% YoY exp.) and January’s retail sales are due (headline 0.7% exp.) ahead of key Fedspeak. “Our hunch is that the consensus is looking for today’s Fed speak to ‘soothe’ some of the fears instigated by Wednesday’s FOMC, so we’d be cautious about buying USDCAD 1.122-1.125 if the data are on the better side”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD levels to consider
As of writing the pair is advancing 0.04% at 1.1251 with the next resistance at 1.1300 (psychological level) ahead of 1.1669 (61.8% of 1.3066-0.9407) and then 1.1680 (high Jul.10 2009). On the flip side, a breakdown of 1.1122 (low Mar.19) would target 1.1045 (daily cloud top) and finally 1.1025 (low Mar.18).