12 Jan 2015
USD/CAD gains on diverging economic recovery, weak Crude
FXStreet (Mumbai) - The USD/CAD pair is inching towards the 5-1/2 year high hit on Friday on weak Crude prices and diverging economic recovery as highlighted by Friday’s jobs data in the US and Canada.
The pair has recovered losses to trade 0.07% higher at 1.1876 levels. The data released on Friday showed the Canadian economy shed 4,300 jobs last month. Meanwhile, the US economy added 252K jobs in December. The growing economic divergence continues to weigh on Canadian dollar today. Meanwhile, crude prices fell back to April 2009 levels on nagging concerns about oversupply.
Moreover, the unexpected weak data in Canada and falling Crude prices indicates that the Bank of Canada is likely to hold interest rates unchanged at 1% for a prolonged period of time.
USD/CAD Technical Levels
The immediate resistance is seen at 1.1888, above which gains could be extended to 1.1951 (May 2009 high). Meanwhile, support is seen at 1.1847 (5-DMA) and 1.18 levels.
The pair has recovered losses to trade 0.07% higher at 1.1876 levels. The data released on Friday showed the Canadian economy shed 4,300 jobs last month. Meanwhile, the US economy added 252K jobs in December. The growing economic divergence continues to weigh on Canadian dollar today. Meanwhile, crude prices fell back to April 2009 levels on nagging concerns about oversupply.
Moreover, the unexpected weak data in Canada and falling Crude prices indicates that the Bank of Canada is likely to hold interest rates unchanged at 1% for a prolonged period of time.
USD/CAD Technical Levels
The immediate resistance is seen at 1.1888, above which gains could be extended to 1.1951 (May 2009 high). Meanwhile, support is seen at 1.1847 (5-DMA) and 1.18 levels.