1 May 2014
USD/CAD falters ahead of 1.1000
FXStreet (Córdoba) -Disappointing US jobless claims data sparked risk aversion in the FX market and sent the USD/CAD to fresh 2-day highs.
The USD/CAD gathered momentum but faltered a few pips shy of the 1.1000 psychological level. Having set a high at 1.0994, the pair is currently trading at the 1.0985 area, still up % on the day.
In the macroeconomic domain, US jobless claims unexpectedly rose by 14,000 to 344,000 in the week ending Apr 25 versus 319,000 expected. Meanwhile personal income and spending grew more than expected in March by 0.5% and 0.9% respectively, as PCE inflation rose 0.2% in March and 1.1% YoY.
USD/CAD technical outlook
From a technical point of view, USDCAD still looks to be shaping up for a modest squeeze higher, according to the TD Securities team. “The rebound in the USD made little headway yesterday but there is solid support on the short-term chart at 1.0945—tested three times in the past two days—and a push through the 1.0977 intervening high would trigger a minor triple bottom and target a rally to 1.1010”.
The USD/CAD gathered momentum but faltered a few pips shy of the 1.1000 psychological level. Having set a high at 1.0994, the pair is currently trading at the 1.0985 area, still up % on the day.
In the macroeconomic domain, US jobless claims unexpectedly rose by 14,000 to 344,000 in the week ending Apr 25 versus 319,000 expected. Meanwhile personal income and spending grew more than expected in March by 0.5% and 0.9% respectively, as PCE inflation rose 0.2% in March and 1.1% YoY.
USD/CAD technical outlook
From a technical point of view, USDCAD still looks to be shaping up for a modest squeeze higher, according to the TD Securities team. “The rebound in the USD made little headway yesterday but there is solid support on the short-term chart at 1.0945—tested three times in the past two days—and a push through the 1.0977 intervening high would trigger a minor triple bottom and target a rally to 1.1010”.