USD/CAD breaches 1.2500

FXStreet (Edinburgh) - The greenback is extending its selling mood on Tuesday, dragging USD/CAD to sub-1.2500 levels.

USD/CAD focus on US CPI

The pair continues to correct lower in the first half of the week, amidst a persistent offered tone in the US dollar since the FOMC meeting last week. The pair will remain under pressure however, as key inflation figures are due in the US economy later. Market consensus expects consumer prices gauged by the headline CPI to contract 0.1% on a year to February while Core prices are expected to gain 1.6% YoY.

Further US data will show New Homes Sales (470K exp.) and the manufacturing PMI tracked by Markit (54.7 exp.).

USD/CAD relevant levels

At the moment the pair is retreating 0.22% at 1.2496 with the next support at 1.2449 (low Mar.18) ahead of 1.2419 (cloud top) and then 1.2400 (psychological level). On the upside, a breakout of 1.2595 (21-d MA) would open the door to 1.2598 (Kijun Sen) and finally 1.2615 (high Mar.23).

Eurozone Composite PMI rises to near four-year highs

The Markit Eurozone PM rose from 53.3 in February to 54.1 in March, climbing for a fourth successive month to reach the highest since May 2011.
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EUR/USD remains elevated around 1.0980 post EMU data

EUR/USD remains lifted close to 1.10 barrier in the mid-European session, as the shared currency received further boost against the US dollar after the EMU manufacturing and services PMIs also came well above market estimates following upbeat German data.
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