USD/CAD firmer, eyes on 1.1000

FXStreet (Edinburgh) - The greenback is gathering traction now against its neighbour on Friday, lifting the USD/CAD to 4-day highs around 1.0980.

USD/CAD closer to 1.1000

The pair found decent support in the mid-1.0800s (Wednesday), managing to revert the steep decline and recover those losses with the psychological 1.10 handle now on the horizon. Data wise, Producer Prices in the US economy advanced at an annual pace of 1.4% in March, surpassing forecasts. “We look to buy a dip back towards 1.0875/1.0900 today if seen, and expect stops through 1.085. There are no data today but next week looks important with both the BOC rate decision and March CPI”, recommended Stephen Gallo, European Had FX Strategy at BMO.

USD/CAD key level

At the moment the pair is up 0.33% at 1.0972 with the immediate resistance at 1.1001 (low Mar.27) ahead of 1.1061 (50-d MA) and finally 1.1078 (high Mar.28). On the flip side, a breakdown of 1.0868 (low Apr.10) would open the door to 1.0858 (low Apr.9) and then 1.0836 (low Jan.10).

US Producer Price Index ex Food & Energy (MoM) beat expectations (0.2%) in March: Actual (0.6%)

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