8 Jul 2015
USD/CAD recovery extends to 1.2750
FXStreet (Edinburgh) - After a brief adventure to sub-1.2700 levels in early trade, USD/CAD has managed to gather traction and is now regaining the 1.2750 area.
USD/CAD attention to FOMC
In spite of the generalized softer tone in the US dollar, the Canadian weakness has been exacerbated so far by the continuation of the decline in crude oil prices, with the barrel of WTI navigating around the $51.00 handle. Further selling pressure in the CAD is also stemming from market expectations of another rate cut by the BoC at its meeting next week.
Ahead in the session, the recent USD strength will be put to the test following the FOMC minutes of the June meeting, with consensus quite divided regarding the statement.
USD/CAD key levels
At the moment the pair is up 0.31% at 1.2745 with the initial hurdle at 1.2779 (high Jul.7) followed by 1.2784 (high Mar.31) 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 attention to FOMC
In spite of the generalized softer tone in the US dollar, the Canadian weakness has been exacerbated so far by the continuation of the decline in crude oil prices, with the barrel of WTI navigating around the $51.00 handle. Further selling pressure in the CAD is also stemming from market expectations of another rate cut by the BoC at its meeting next week.
Ahead in the session, the recent USD strength will be put to the test following the FOMC minutes of the June meeting, with consensus quite divided regarding the statement.
USD/CAD key levels
At the moment the pair is up 0.31% at 1.2745 with the initial hurdle at 1.2779 (high Jul.7) followed by 1.2784 (high Mar.31) 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).