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16 Jul 2015
USD/CAD deflates to 1.2920
FXStreet (Edinburgh) - The greenback is now shedding further gains vs. its Canadian neighbour, pushing USD/CAD to the 1.2925/20 band.
USD/CAD capped around 1.2950
After reaching fresh cycle tops in the 1.2960 area, the pair has sparked a correction lower to the current 1.2920 area ahead of further US data releases. Spot has managed to clinch recent highs following a 25 bp rate cut by the BoC at its meeting on Wednesday, lowering its refi rate to 0.5% mainly due to the central bank’s bearish outlook on the domestic economy and the persistent slump in crude oil prices.
Ahead in the session, US NAHB index is due followed by the Manufacturing Survey gauged by the Philly Fed and the second testimony by Chair Yellen before the Senate.
USD/CAD key levels
At the moment the pair is up 0.05% at 1.2922 with the next hurdle at 1.2951 (high Jul.16) ahead of 1.2958 (2015 high Jul.15) and then 1.3000 (psychological level). On the downside, a break below 1.2805 (high Jul.14) would expose 1.2728 (low Jul.15) and finally 1.2683 (low Jul.13).
USD/CAD capped around 1.2950
After reaching fresh cycle tops in the 1.2960 area, the pair has sparked a correction lower to the current 1.2920 area ahead of further US data releases. Spot has managed to clinch recent highs following a 25 bp rate cut by the BoC at its meeting on Wednesday, lowering its refi rate to 0.5% mainly due to the central bank’s bearish outlook on the domestic economy and the persistent slump in crude oil prices.
Ahead in the session, US NAHB index is due followed by the Manufacturing Survey gauged by the Philly Fed and the second testimony by Chair Yellen before the Senate.
USD/CAD key levels
At the moment the pair is up 0.05% at 1.2922 with the next hurdle at 1.2951 (high Jul.16) ahead of 1.2958 (2015 high Jul.15) and then 1.3000 (psychological level). On the downside, a break below 1.2805 (high Jul.14) would expose 1.2728 (low Jul.15) and finally 1.2683 (low Jul.13).