21 Jan 2015
USD/CAD testing lows around 1.2070
FXStreet (Edinburgh) - The US dollar is losing the grip vs. its main competitors on Wednesday, sending USD/CAD to challenge intraday lows registered overnight in the vicinity of 1.2070.
USD/CAD focus on BoC
In the current context of USD-weakness, CAD traders will look for the result from the Wholesale Sales during November (-0.1% exp.) ahead of the key BoC monetary policy meeting and subsequent press conference by Governor S.Poloz. Market participants will scrutinize the BoC statement in light of the ongoing decline in crude oil prices, as well as the growth and inflation prospects in the domestic economy in a scenario of US solid economic recovery.
Strategists at TD Securities commented, “If the BoC does disappoint very dovish expectations, we look for USDCAD to dip briefly but the underlying message of economic softness will help underpin the broader bull trend in funds; look to fade short-term weakness is USDCAD; we expect the market to press on towards 1.22+ near term”.
USD/CAD levels to consider
At the moment the pair is losing 0.28% at 1.2071 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 focus on BoC
In the current context of USD-weakness, CAD traders will look for the result from the Wholesale Sales during November (-0.1% exp.) ahead of the key BoC monetary policy meeting and subsequent press conference by Governor S.Poloz. Market participants will scrutinize the BoC statement in light of the ongoing decline in crude oil prices, as well as the growth and inflation prospects in the domestic economy in a scenario of US solid economic recovery.
Strategists at TD Securities commented, “If the BoC does disappoint very dovish expectations, we look for USDCAD to dip briefly but the underlying message of economic softness will help underpin the broader bull trend in funds; look to fade short-term weakness is USDCAD; we expect the market to press on towards 1.22+ near term”.
USD/CAD levels to consider
At the moment the pair is losing 0.28% at 1.2071 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).