Back
17 Apr 2014
USD/CAD wobbling around 1.1000
FXStreet (Edinburgh) - The USD/CAD is trading in a narrow range between 1.1000 and 1.1020 on Thursday, ahead of key inflation figures due later.
USD/CAD focus on Canadian CPI, US docket
The pair is extending the consolidation pattern from the Asian session, hovering over the 1.1000/15 area (23.6% Fibo retracement of 1.1278-1.0858). Ahead in the day, inflation figures are due in Canada, with consensus expecting consumer prices to have advanced 1.4% on a yearly basis while the Core reading is forecasted at 1.3% YoY. In the US docket, Claims are seen up to 315K from 300K while the Philly Fed manufacturing survey would have improved to 10 in March. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “Technically, USDCAD looks to us like it “wants” to trade higher but is lacking incentives at the moment. Short-term trend momentum is positive, keeping USDCAD pinned up against short-term resistance in the 1.1020 area. A break above 1.1020 should see spot rally to 1.1070 or so fairly easily (the 40-day MA comes in at 1.1065)”.
USD/CAD levels to watch
As of writing the pair is losing 0.01% at 1.1009 with the immediate support at 1.0960 (low Apr.15) ahead of 1.0919 (low Apr.11) and finally 1.0907 (daily cloud base). On the flip side, a breakout of 1.1056 (daily cloud top) would open the door to 1.1061 (30-d MA) and then 1.1078 (high Mar.28).
USD/CAD focus on Canadian CPI, US docket
The pair is extending the consolidation pattern from the Asian session, hovering over the 1.1000/15 area (23.6% Fibo retracement of 1.1278-1.0858). Ahead in the day, inflation figures are due in Canada, with consensus expecting consumer prices to have advanced 1.4% on a yearly basis while the Core reading is forecasted at 1.3% YoY. In the US docket, Claims are seen up to 315K from 300K while the Philly Fed manufacturing survey would have improved to 10 in March. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “Technically, USDCAD looks to us like it “wants” to trade higher but is lacking incentives at the moment. Short-term trend momentum is positive, keeping USDCAD pinned up against short-term resistance in the 1.1020 area. A break above 1.1020 should see spot rally to 1.1070 or so fairly easily (the 40-day MA comes in at 1.1065)”.
USD/CAD levels to watch
As of writing the pair is losing 0.01% at 1.1009 with the immediate support at 1.0960 (low Apr.15) ahead of 1.0919 (low Apr.11) and finally 1.0907 (daily cloud base). On the flip side, a breakout of 1.1056 (daily cloud top) would open the door to 1.1061 (30-d MA) and then 1.1078 (high Mar.28).