21 Jan 2015
USD/CAD muted around lows
FXStreet (Edinburgh) - USD/CAD kept the composure following the data releases in the US and Canada today.
USD/CAD remains in lows
The demand for the greenback remains subdued, confining the pair to session lows in the 1.2070 region. Mixed US housing data for the month of December showed Housing Starts surpassing estimates while Building Permits came in below the median. In the Canadian docket, second-tier release saw Wholesale Sales contracted at a monthly pace of 0.3% in November, ahead of the more significant BoC meeting.
In light of the BoC gathering sue later, Chief FX Strategist at Scotiabank, assessed, “There is already a lot of bad news priced in, as the market has incorporated a 25% probability of an interest rate cut in the next 12-months; accordingly for a further deterioration in the outlook the BoC will have to make a fairly dramatic dovish turn”.
USD/CAD levels to consider
At the moment the pair is losing 0.26% at 1.2074 with the immediate support at 1.1985 (high Jan.19) followed by 1.1959 (Tenkan Sen) and then 1.1940 (low Jan.20). On the upside, a surpass of 1.2115 (high Jan.20) would clear the way towards 1.2200 (psychological level) and finally 1.2265 (high Apr.28 2009).
USD/CAD remains in lows
The demand for the greenback remains subdued, confining the pair to session lows in the 1.2070 region. Mixed US housing data for the month of December showed Housing Starts surpassing estimates while Building Permits came in below the median. In the Canadian docket, second-tier release saw Wholesale Sales contracted at a monthly pace of 0.3% in November, ahead of the more significant BoC meeting.
In light of the BoC gathering sue later, Chief FX Strategist at Scotiabank, assessed, “There is already a lot of bad news priced in, as the market has incorporated a 25% probability of an interest rate cut in the next 12-months; accordingly for a further deterioration in the outlook the BoC will have to make a fairly dramatic dovish turn”.
USD/CAD levels to consider
At the moment the pair is losing 0.26% at 1.2074 with the immediate support at 1.1985 (high Jan.19) followed by 1.1959 (Tenkan Sen) and then 1.1940 (low Jan.20). On the upside, a surpass of 1.2115 (high Jan.20) would clear the way towards 1.2200 (psychological level) and finally 1.2265 (high Apr.28 2009).