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12 Jul 2013
USD/CAD Consolidation phase
FXstreet.com (London) - USD/CAD is opening in NA amid dollar bulls reaching a high and a follow through from European hours at 1.0397.
USD/CAD is bid, while else where the market seems to be positioning long of the dollar again ahead of the weekend. The commodity currencies have taken a hit, along with a slip in gold and oil. The AUD/USD for example is trading at the lowest levels since September 2010 amid economic woes from China and subsequent downgrades in growth expectations. Some of the tensions there may have spilled across to the loonie as well, although AUD/CAD is now also trading at three year lows. Eyes there are set for 0.9100 in the weeks ahead. In this moment, Funds has eased back from the high but remains in positive territory for the session so far, just slightly below the pivot point of 1.0388. The market is waiting for Michigan Consumer Sentiment at 13.55GMT that could add something more before the close of a very busy week.
USD/CAD consolidation
Research teams at TD Securities suggested that USD/CAD, for the next few days, provides an opportunity to consolidate the recent softness. “We do not expect the USD to fall significantly, providing there are no adverse surprises in the incoming US data.” They continued to say that that CAD focus falls on the BoC meeting next Wednesday where rate hike prospects may end up sounding even less imminent. “The rally in funds has certainly experienced a technical setback but the drop may not be fatal for the broader rally. Support in the low 1.03 area is holding and the outlook only turns outright negative below 1.0140, we think. Above 1.0420/25 is bullish. “
USD/CAD is bid, while else where the market seems to be positioning long of the dollar again ahead of the weekend. The commodity currencies have taken a hit, along with a slip in gold and oil. The AUD/USD for example is trading at the lowest levels since September 2010 amid economic woes from China and subsequent downgrades in growth expectations. Some of the tensions there may have spilled across to the loonie as well, although AUD/CAD is now also trading at three year lows. Eyes there are set for 0.9100 in the weeks ahead. In this moment, Funds has eased back from the high but remains in positive territory for the session so far, just slightly below the pivot point of 1.0388. The market is waiting for Michigan Consumer Sentiment at 13.55GMT that could add something more before the close of a very busy week.
USD/CAD consolidation
Research teams at TD Securities suggested that USD/CAD, for the next few days, provides an opportunity to consolidate the recent softness. “We do not expect the USD to fall significantly, providing there are no adverse surprises in the incoming US data.” They continued to say that that CAD focus falls on the BoC meeting next Wednesday where rate hike prospects may end up sounding even less imminent. “The rally in funds has certainly experienced a technical setback but the drop may not be fatal for the broader rally. Support in the low 1.03 area is holding and the outlook only turns outright negative below 1.0140, we think. Above 1.0420/25 is bullish. “