23 Jun 2014
USD/CAD trims losses ahead of the American opening
FXStreet (Córdoba) - The USD/CAD fell to a fresh 5 ½-month low Monday, as higher-than-expected Canadian CPI figures Friday triggered a CAD rally that was fueled by the break below 1.0750 today.
The USD/CAD bottomed out at 1.0716 during the European session, although it has managed to trim some of its recent losses to currently trade around 1.0735, down 0.19%, ahead of the American opening. The US Markit manufacturing PMI for June and May existing home sales data are due later today.
USD/CAD outlook
“As the dust settles after the CPI report, this feels a bit like a back to the drawing board moment for us, as long-time CAD bears and we clearly have to lower our sights for the USD/CAD outlook in the near-term at least”, said the TD Securities analyst team.
“The slide back to the low 1.07s in USD/CAD tales back about half of the rally seen from September last year—technically, a better spot for a now oversold USD to start to rally, the USD/CAD bulls in us say”, they added. “But even if the USD can stabilize in the low 1.07s, near-term gains are liable to remain limited. A quick recovery back through the upper 1.07s would be a plus but gains may not extend that much more than the low 1.08 area for the moment”.
The USD/CAD bottomed out at 1.0716 during the European session, although it has managed to trim some of its recent losses to currently trade around 1.0735, down 0.19%, ahead of the American opening. The US Markit manufacturing PMI for June and May existing home sales data are due later today.
USD/CAD outlook
“As the dust settles after the CPI report, this feels a bit like a back to the drawing board moment for us, as long-time CAD bears and we clearly have to lower our sights for the USD/CAD outlook in the near-term at least”, said the TD Securities analyst team.
“The slide back to the low 1.07s in USD/CAD tales back about half of the rally seen from September last year—technically, a better spot for a now oversold USD to start to rally, the USD/CAD bulls in us say”, they added. “But even if the USD can stabilize in the low 1.07s, near-term gains are liable to remain limited. A quick recovery back through the upper 1.07s would be a plus but gains may not extend that much more than the low 1.08 area for the moment”.