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26 Mar 2015
USD/CAD recovery capped by 1.2500
FXStreet (Edinburgh) - The recovery in USD/CAD from session troughs in the 1.2410 area seems to gave found a tough barrier in the 1.2490/1.2500 band today.
USD/CAD boosted by USD
The greenback staged a solid come-back from intraday lows, propped up by a re-emergence of the buying interest and the sentiment towards the risk aversion. Positive docket in the US from Initial Claims and Markit’s Services PMI also collaborated with the upside.
In addition, in his speech in London, Governor S.Poloz defended the last rate cut, oriented to prevent disinflationary forces coming from declining oil prices to settle in the domestic economy. He also argued that he needs to monitor the evolution of the economy prior to any other decision regarding rates and that he expects ‘quite a lot’ of economic weakness during the first quarter. On the brighter side, Poloz sees better growth prospects for the second half of the year, backed by a solid performance from the exports sector and consumer spending.
USD/CAD key levels
As of writing the pair is losing 0.33% at 1.2479 with the next support at 1.2410 (low Mar.26) ahead of 1.2407 (low Mar.5) and then 1.2388 (low Feb.26). On the flip side, a breakout of 1.2546 (high Mar.24) would expose 1.2594 (21-d MA) and finally 1.2600 (psychological level).
USD/CAD boosted by USD
The greenback staged a solid come-back from intraday lows, propped up by a re-emergence of the buying interest and the sentiment towards the risk aversion. Positive docket in the US from Initial Claims and Markit’s Services PMI also collaborated with the upside.
In addition, in his speech in London, Governor S.Poloz defended the last rate cut, oriented to prevent disinflationary forces coming from declining oil prices to settle in the domestic economy. He also argued that he needs to monitor the evolution of the economy prior to any other decision regarding rates and that he expects ‘quite a lot’ of economic weakness during the first quarter. On the brighter side, Poloz sees better growth prospects for the second half of the year, backed by a solid performance from the exports sector and consumer spending.
USD/CAD key levels
As of writing the pair is losing 0.33% at 1.2479 with the next support at 1.2410 (low Mar.26) ahead of 1.2407 (low Mar.5) and then 1.2388 (low Feb.26). On the flip side, a breakout of 1.2546 (high Mar.24) would expose 1.2594 (21-d MA) and finally 1.2600 (psychological level).