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Canada saw some better than expected inflation data on Friday which were welcomed by USD/CAD sellers. The pair would have probably been trading much lower if it weren't for uncertainty regarding NAFTA, U.S. politics and Canadian housing market, all of which keep the Bank of Canada in cautious mode. 1.26 is the initial support and stronger one closer to 1.25.
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USD/CAD rallies as Bank of Canada expresses caution
BOC decided to leave overnight rate at 1.0% at today's meeting. GDP forecasts were revised slightly lower while CPI forecasts were just marginally bumped up. The bank expressed concern with regard to geopolitical developments, NAFTA and high levels of household debt, and said they will be cautious in making future adjustments to the rate.
The fact that such a scenario was widely anticipated didn't help the Canadian dollar. After a quick washout to 1.2635, USD/CAD jumped 100 pips, added 80 more i…
The fact that such a scenario was widely anticipated didn't help the Canadian dollar. After a quick washout to 1.2635, USD/CAD jumped 100 pips, added 80 more i…
USD/CAD finds equilibrium near 1.25 level
Canadian dollar has been less driven by oil prices recently. 530-pip move from the lows near 1.2050 could be seen as a correction of excessive monetary policy tightening expectations. Uncertainty surrounding NAFTA has been another headwind.
The pair found equilibrium in a range centered on 1.25 level. 1.24 - 1.2430 is the range support and 1.2570 - 1.26 is the resistance. A convincing break of either extreme will signal the direction for the next leg.
The pair found equilibrium in a range centered on 1.25 level. 1.24 - 1.2430 is the range support and 1.2570 - 1.26 is the resistance. A convincing break of either extreme will signal the direction for the next leg.
USD/CAD pulls back after making a new high
Canadian dollar has been under the cosh this week. The currency made a new low for the year after U.S. taxed Canadian lumber and another one yesterday after the talk that the U.S. is about to withdraw from NAFTA. However, Trump agreed with leaders of Canada and Mexico not to terminate NAFTA and the currency staged a rebound.
I took only two hours for the USD/CAD to fall from 1.3650 to 1.3530 before buyers stepped back in. 1.3535 (March high) is the immediate support. A stronger one may be encoun…
I took only two hours for the USD/CAD to fall from 1.3650 to 1.3530 before buyers stepped back in. 1.3535 (March high) is the immediate support. A stronger one may be encoun…