29 Jan 2015
USD/CAD returns to 1.2530
FXStreet (Edinburgh) - The greenback is now shedding some of the initial gains vs. the Canadian dollar, taking USD/CAD back to the 1.2530 region.
USD/CAD down from multi-year peaks
The pair is deflating from fresh tops since April 2009 near 1.2560, despite Initial Claims in the US economy decreased to 265K in the week ended on January 23rd, the lowest level in the last 15 years. Next on tap will be further data from the US housing market, with Pending Home Sales expected to have expanded 0.5% on a monthly basis during December.
On the Canadian side, CAD will remain under pressure as November’s GDP figures are due tomorrow, with forecasts pointing to a flat reading, down from the previous 0.3% expansion. In light of the recent BoC move, a reading in line with the market consensus will surely weigh on the Canadian dollar, giving extra wings to the pair.
USD/CAD relevant levels
The pair is now up 0.07% at 1.2531 and a surpass of 1.2564 (2015 high Jan.29) would open the door to the psychological level at 1.2600 and finally 1.2606 (high Apr.2 2009). On the flip side, the immediate support lines up at 1.2512 (low Jan.29) followed by 1.2500 (psychological level) and then 1.2390 (low Jan.28).
USD/CAD down from multi-year peaks
The pair is deflating from fresh tops since April 2009 near 1.2560, despite Initial Claims in the US economy decreased to 265K in the week ended on January 23rd, the lowest level in the last 15 years. Next on tap will be further data from the US housing market, with Pending Home Sales expected to have expanded 0.5% on a monthly basis during December.
On the Canadian side, CAD will remain under pressure as November’s GDP figures are due tomorrow, with forecasts pointing to a flat reading, down from the previous 0.3% expansion. In light of the recent BoC move, a reading in line with the market consensus will surely weigh on the Canadian dollar, giving extra wings to the pair.
USD/CAD relevant levels
The pair is now up 0.07% at 1.2531 and a surpass of 1.2564 (2015 high Jan.29) would open the door to the psychological level at 1.2600 and finally 1.2606 (high Apr.2 2009). On the flip side, the immediate support lines up at 1.2512 (low Jan.29) followed by 1.2500 (psychological level) and then 1.2390 (low Jan.28).