13 Jan 2015
USD/CAD back to 1.1960
FXStreet (Edinburgh) - USDCAD is now extending its bounce off the area of 1.1920, as markets enter the last part of the US session.
USD/CAD focus on US data, crude oil
Despite today’s inability to break above the critical 1.2000 barrier, spot remains bolstered by the USD momentum and the decreasing oil prices (hurting the CAD). Moving forwards to tomorrow’s docket in the US economy, December Retail Sales and the Fed’s Beige Book will be the main highlights, with consensus expecting headline sales to contract 0.1% on a monthly basis, while a flat reading is expected from the core sales. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “As long as oil prices continue to reach fresh lows USDCAD will be forced higher. We expect USDCAD to reach its highs in the second quarter and then stabilize”.
USD/CAD key levels
The pair is now losing 0.02% at 1.1963 with the next support at 1.1836 (low Jan.12) ahead of 1.1808 (10-d MA) and then 1.1805 (low Jan.9). On the upside, a surpass of 1.1992 (2015 high Jan.13) would aim for 1.2000 (psychological level) and finally 1.2070 (low Apr.24 2009).
USD/CAD focus on US data, crude oil
Despite today’s inability to break above the critical 1.2000 barrier, spot remains bolstered by the USD momentum and the decreasing oil prices (hurting the CAD). Moving forwards to tomorrow’s docket in the US economy, December Retail Sales and the Fed’s Beige Book will be the main highlights, with consensus expecting headline sales to contract 0.1% on a monthly basis, while a flat reading is expected from the core sales. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “As long as oil prices continue to reach fresh lows USDCAD will be forced higher. We expect USDCAD to reach its highs in the second quarter and then stabilize”.
USD/CAD key levels
The pair is now losing 0.02% at 1.1963 with the next support at 1.1836 (low Jan.12) ahead of 1.1808 (10-d MA) and then 1.1805 (low Jan.9). On the upside, a surpass of 1.1992 (2015 high Jan.13) would aim for 1.2000 (psychological level) and finally 1.2070 (low Apr.24 2009).