24 Oct 2013
USD/CAD slightly upwards on better – even distorted – US data
FXstreet.com (Athens) – The USD/CAD is trading softly higher and well above the 1.0400 handle after the better US data.
USD/CAD up on better US data; loonies seeks a reason to soften on ultra dovish BoC
The USD/CAD is trading on the upper level after the better US data. Elaborating on the trade deficit increased a tad to $38.80 billion in August, bettering previous estimates although up from July’s reading at $38.64 (revised from $39.15 billion, while the Initial Claims dropped to 350K in the week ended on October 18th, down from 362K from the previous week. However, taken for granted that data have been impacted by the recent government shutdown, market participants mostly shrugged off the release, thus, it seems that loonie seeks for a even slight reason to soften after yesterday’s BoC ultra dovish release.
Technical Aspects on USD/CAD
Greg Moore on behalf of TD Securities suggests that “The Bank of Canada dropped its tightening bias at yesterday’s meeting—an outcome that was even more dovish than expected…Later hikes from the BoC adds upside risk to our USD/CAD forecast—particularly toward the end of 2014 and into 2015. It should also keep the pair somewhat better supported in the near term. On the charts, USD/CAD has picked up some strong momentum over the past 24 hours, and even with the overall consolidative tone of the broader FX space overnight, pressure on the CAD continues to look heavy. The October high at 1.0419 is the nearest minor resistance above spot, before the mid-1.04 area comes into view. We remain bullish overall, and would look to buy on any minor dips.”
USD/CAD up on better US data; loonies seeks a reason to soften on ultra dovish BoC
The USD/CAD is trading on the upper level after the better US data. Elaborating on the trade deficit increased a tad to $38.80 billion in August, bettering previous estimates although up from July’s reading at $38.64 (revised from $39.15 billion, while the Initial Claims dropped to 350K in the week ended on October 18th, down from 362K from the previous week. However, taken for granted that data have been impacted by the recent government shutdown, market participants mostly shrugged off the release, thus, it seems that loonie seeks for a even slight reason to soften after yesterday’s BoC ultra dovish release.
Technical Aspects on USD/CAD
Greg Moore on behalf of TD Securities suggests that “The Bank of Canada dropped its tightening bias at yesterday’s meeting—an outcome that was even more dovish than expected…Later hikes from the BoC adds upside risk to our USD/CAD forecast—particularly toward the end of 2014 and into 2015. It should also keep the pair somewhat better supported in the near term. On the charts, USD/CAD has picked up some strong momentum over the past 24 hours, and even with the overall consolidative tone of the broader FX space overnight, pressure on the CAD continues to look heavy. The October high at 1.0419 is the nearest minor resistance above spot, before the mid-1.04 area comes into view. We remain bullish overall, and would look to buy on any minor dips.”