19 Feb 2015
USD/CAD recovers 1.2500
FXStreet (Edinburgh) - The US dollar keeps the buoyant tone vs. its Canadian counterpart, with USD/CAD back to the 1.2500 neighbourhood on Thursday.
USD/CAD deflates from 1.2560
The initial upside in the pair seems to have lost impetus around 1.2560 in the European afternoon, sparking a leg lower to sub-1.2480 levels although currently managing to revert that knee-jerk.
In her speech today in Quebec, BoC Deputy Governor A.Cote argued that Canadian consumer prices could drop into negative territory following the descent in oil prices, although this fall would be only temporary; she also ruled out the chance of deflation in Canada, as inflation expectations remain firmly anchored. Cote added that the recent rate cut was oriented to provide insurance in a context of weaker inflation figures.
USD/CAD levels to watch
At the moment the pair is up 0.65% at 1.2508 with the next resistance at 1.2556 (high Feb.19) ahead of 1.2600 (psychological level) and then 1.2646 (high Feb.12). On the flip side, a breakdown of 1.2438 (low Feb.19) would aim for 1.2360 (low Feb.17) and finally 1.2353 (low Feb.3).
USD/CAD deflates from 1.2560
The initial upside in the pair seems to have lost impetus around 1.2560 in the European afternoon, sparking a leg lower to sub-1.2480 levels although currently managing to revert that knee-jerk.
In her speech today in Quebec, BoC Deputy Governor A.Cote argued that Canadian consumer prices could drop into negative territory following the descent in oil prices, although this fall would be only temporary; she also ruled out the chance of deflation in Canada, as inflation expectations remain firmly anchored. Cote added that the recent rate cut was oriented to provide insurance in a context of weaker inflation figures.
USD/CAD levels to watch
At the moment the pair is up 0.65% at 1.2508 with the next resistance at 1.2556 (high Feb.19) ahead of 1.2600 (psychological level) and then 1.2646 (high Feb.12). On the flip side, a breakdown of 1.2438 (low Feb.19) would aim for 1.2360 (low Feb.17) and finally 1.2353 (low Feb.3).