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29 May 2014
USD/CAD around 1.0860 pre-data
FXStreet (Edinburgh) - The greenback is giving ground against its neighbor north of the border, taking the USD/CAD to the 1.0860/65 region.
USD/CAD focus on data
Spot would remain under pressure, as quite relevant data is due in both the US economy and Canada: Initial Claims, the second revision of the annualized Q1 GDP and Pending Home Sales on one side, and Canadian Current Account figures during the first quarter, on the other. “Neither US/Canadian 10s nor our ‘fair value’ model indicate a significant mispricing in USDCAD at this stage, so we really need some convincingly better US data today and tomorrow to make a weekly settlement above 1.0875 look highly probable”, commented Stephen Gallo, Europeann Head FX Strategy at BMO.
USD/CAD significant levels
The pair is now retreating 0.19% at 1.0856 with the next support at 1.0814 (low May 8) ahead of 1.0762 (low Jan.8) and then 1.0737 (high Dec.20). On the flip side, a breakout of 1.0881 (high May 26) would open the door to 1.0909 (high May 23) and finally 1.0932 (high May 22).
USD/CAD focus on data
Spot would remain under pressure, as quite relevant data is due in both the US economy and Canada: Initial Claims, the second revision of the annualized Q1 GDP and Pending Home Sales on one side, and Canadian Current Account figures during the first quarter, on the other. “Neither US/Canadian 10s nor our ‘fair value’ model indicate a significant mispricing in USDCAD at this stage, so we really need some convincingly better US data today and tomorrow to make a weekly settlement above 1.0875 look highly probable”, commented Stephen Gallo, Europeann Head FX Strategy at BMO.
USD/CAD significant levels
The pair is now retreating 0.19% at 1.0856 with the next support at 1.0814 (low May 8) ahead of 1.0762 (low Jan.8) and then 1.0737 (high Dec.20). On the flip side, a breakout of 1.0881 (high May 26) would open the door to 1.0909 (high May 23) and finally 1.0932 (high May 22).