7 Jul 2015
USD/CAD off highs, near 1.2740
FXStreet (Edinburgh) - After hitting fresh tops around 1.2780, USD/CAD has now surrendered part of those gains and returned to the 1.2745/40 band.
USD/CAD stronger on USD
The bid tone around the greenback remains the main driver of the new multi-month peaks in the pair despite losing vigour in the upper 1.2700s today.
In the same direction, market speculations on a potential rate cut by the BoC at next week’s meeting and the recent slump in crude oil prices are plotting against any attempt of recovery in the CAD, adding to the selling bias.
In the data space, US trade deficit came in lower than expected at $41.87 billion during month, while the Canadian trade deficit widened more than anticipated $3.34 billion in May vs. $2.50 billion expected.
USD/CAD key levels
At the moment the pair is up 0.70% at 1.2739 with the initial hurdle at 1.2781 (high Jul.7) followed by 1.2800 (psychological level) and finally 1.2823 (high Mar.13). On the other hand, a breakdown of 1.2537 (low Jul.3) would open the door to 1.2487 (low Jul.1) and then 1.2362 (low Jun.30).
USD/CAD stronger on USD
The bid tone around the greenback remains the main driver of the new multi-month peaks in the pair despite losing vigour in the upper 1.2700s today.
In the same direction, market speculations on a potential rate cut by the BoC at next week’s meeting and the recent slump in crude oil prices are plotting against any attempt of recovery in the CAD, adding to the selling bias.
In the data space, US trade deficit came in lower than expected at $41.87 billion during month, while the Canadian trade deficit widened more than anticipated $3.34 billion in May vs. $2.50 billion expected.
USD/CAD key levels
At the moment the pair is up 0.70% at 1.2739 with the initial hurdle at 1.2781 (high Jul.7) followed by 1.2800 (psychological level) and finally 1.2823 (high Mar.13). On the other hand, a breakdown of 1.2537 (low Jul.3) would open the door to 1.2487 (low Jul.1) and then 1.2362 (low Jun.30).