USD/CAD drops to 1.1990

FXStreet (Edinburgh) - The greenback keeps extending its negative mood on Wednesday, now dragging USD/CAD to sub-1.2000 levels.

USD/CAD weaker on US data

The pair is reacting accordingly after the miserable results from the US ADP report during April (169K vs. 200K exp.) and the mixed preliminary data from US Unit Labour Costs (5.0% act. vs. 4.3% exp.) and Nonfarm Productivity (-1.9% act. vs. -1.8% exp.) during t he first quarter.

Next of relevance for the pair will be Ivey’s PMI in the Canadian economy followed by the weekly report on crude oil inventories by the EIA.

USD/CAD levels to consider

At the moment the pair is retreating 0.57% at 1.1998 with the next support at 1.1978 (low Jan.12) ahead of 1.1945 (low Apr.29) and then 1.1900 (psychological level). On the other hand, a breakout of 1.2087 (high May 6) would open the door to 1.2131 (high May 5) and finally 1.2180 (high May 4).

USD/CAD dips remain a buy – TDS

FX Strategists at TD Securities, remain constructive on the outlook for GBP/USD over the medium-term, and further suggest buying the dips of the pair.
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Dean Popplewell, Director of Currency Analysis and Research at MarketPulse, notes that AUD, NOK and CAD continue to be supported from rising Crude prices.
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