6 Jun 2014
USD/CAD tests highs beyond 1.0940
FXStreet (Edinburgh) - The CAD is trading on the softer side vs. its neighbour on Friday, pushing the USD/CAD to the upper band of the range around 1.0935/40 so far.
USD/CAD boosted by data
The Canadian dollar is losing ground after the jobless rate in Canada ticked higher to 7.0% in May, despite the employment increased by 25.8K. In the US, in-line Payrolls for the month of May (217K act. vs. 218K exp.) plus a 6.3% unemployment rate is bolstering the current better sentiment around the greenback, helping spot to climb above 1.0940. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “We expect USDCAD to continue to trade within a range, either side of 1.10; with the near-term fundamental backdrop no longer supporting significant CAD depreciation but the BoC restraining any CAD gains”.
USD/CAD levels to consider
At the moment the pair is up 0.10% at 1.0935 with the next resistance at 1.0962 (61.8% of 1.1053-1.0814) followed by 1.1001 (21-w MA) and finally 1.1014 (low Apr.25). On the flip side, a breakdown of 1.0814 (low May 8) would open the door to 1.0762 (low Jan.8) and then 1.0737 (high Dec.20).
USD/CAD boosted by data
The Canadian dollar is losing ground after the jobless rate in Canada ticked higher to 7.0% in May, despite the employment increased by 25.8K. In the US, in-line Payrolls for the month of May (217K act. vs. 218K exp.) plus a 6.3% unemployment rate is bolstering the current better sentiment around the greenback, helping spot to climb above 1.0940. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “We expect USDCAD to continue to trade within a range, either side of 1.10; with the near-term fundamental backdrop no longer supporting significant CAD depreciation but the BoC restraining any CAD gains”.
USD/CAD levels to consider
At the moment the pair is up 0.10% at 1.0935 with the next resistance at 1.0962 (61.8% of 1.1053-1.0814) followed by 1.1001 (21-w MA) and finally 1.1014 (low Apr.25). On the flip side, a breakdown of 1.0814 (low May 8) would open the door to 1.0762 (low Jan.8) and then 1.0737 (high Dec.20).