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10 Mar 2014
USD/CAD testing 1.1100
FXStreet (Edinburgh) - The USD/CAD is now deflating to the area around the key support at 1.1100 on Monday, down from overnight peaks near 1.1130.
USD/CAD surrenders gains
After bottoming out in the mid-1.09s last week, spot found the much-needed oxygen in the auspicious Payrolls numbers for the month of February, climbing to the boundaries of 1.1100 the figure in the wake of the release. Next on tap in the Canadian docket will be the Housing Starts, expected to increase at an annual pace of 190K during February. “For the time being, we expect 1.115 in USDCAD to firmly cap offers… we believe most of the USDCAD strength late last week was a classic relief rally in the USD, and mainly a function of how nervous FX investors were about a very weak US report – prior to the release of the data”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD levels to watch
The pair is now up 0.04% at 1.1096 facing the next resistance at 1.1132 (high Mar.10) followed by 1.1148 (high Feb.28) and then 1.1160 (high Feb.27). On the flip side, a breach of 1.0998 (daily cloud top) would aim for 1.0955 (low Mar.6) and finally 1.0911 (low Feb.19).
USD/CAD surrenders gains
After bottoming out in the mid-1.09s last week, spot found the much-needed oxygen in the auspicious Payrolls numbers for the month of February, climbing to the boundaries of 1.1100 the figure in the wake of the release. Next on tap in the Canadian docket will be the Housing Starts, expected to increase at an annual pace of 190K during February. “For the time being, we expect 1.115 in USDCAD to firmly cap offers… we believe most of the USDCAD strength late last week was a classic relief rally in the USD, and mainly a function of how nervous FX investors were about a very weak US report – prior to the release of the data”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD levels to watch
The pair is now up 0.04% at 1.1096 facing the next resistance at 1.1132 (high Mar.10) followed by 1.1148 (high Feb.28) and then 1.1160 (high Feb.27). On the flip side, a breach of 1.0998 (daily cloud top) would aim for 1.0955 (low Mar.6) and finally 1.0911 (low Feb.19).