5 Feb 2014
USD/CAD erases losses after US, Canada data
FXStreet (Córdoba) - The USD/CAD bounced off lows and erased daily losses following below-expectations US ADP report and Canadian building permits.
Canadian building permits fell 4.1% in December after falling 6.6% in November, still below expectations of a 2.2% rise. The USD/CAD recovered from a 1-week low of 1.1036 to a session high of 1.1090 and it was last at the 1.1085 zone, virtually unchanged since opening.
USD/CAD technical perspective
"For today, with the CAD is not especially caught up in swinging risk sentiment, the focus will remain on the US data; disappointing data may depress the USD to a degree but we don’t think the softer run of data from the US recently will do anything to affect Fed policy thinking, certainly for the moment", said the TD Securities team. "Tapering has started so it really has to finish. Technically, loss of USDCAD support at 1.1040/45 will target a drop back to the high 1.09s at least".
Canadian building permits fell 4.1% in December after falling 6.6% in November, still below expectations of a 2.2% rise. The USD/CAD recovered from a 1-week low of 1.1036 to a session high of 1.1090 and it was last at the 1.1085 zone, virtually unchanged since opening.
USD/CAD technical perspective
"For today, with the CAD is not especially caught up in swinging risk sentiment, the focus will remain on the US data; disappointing data may depress the USD to a degree but we don’t think the softer run of data from the US recently will do anything to affect Fed policy thinking, certainly for the moment", said the TD Securities team. "Tapering has started so it really has to finish. Technically, loss of USDCAD support at 1.1040/45 will target a drop back to the high 1.09s at least".