21 Jan 2015
USD/CAD eases from 1.2400
FXStreet (Edinburgh) - The greenback is now decelerating its upside vs. its northern neighbor, with USD/CAD hovering over 1.2375/70.
USD/CAD in multi-year tops
After climbing to levels just shy of the 1.2400 barrier earlier on, the pair is now giving away some gains and returning to the vicinity of 1.2370. Spot was catapulted from the mid-1.2000s following the unexpected decision of the BoC to cut the refi rate by 25 bps to 0.75%. In the subsequent press conference, Governor Stephen Poloz stressed that the rate cut was aimed to counteract the disinflationary pressures and in response to the ongoing slump in the crude oil prices.
In the technical space, analysts at TD Securities added, “The move up in USDCAD does not look over extended technically nor does it look fundamentally unjustified… We think USDCAD is heading towards 1.30 in the next few months from a technical point of view”.
USD/CAD levels to watch
The pair is now up 2.17% at 1.2370 with the next resistance at 1.2400 and 1.2500 (psychological levels) followed by 1.2715 (high April 2009). On the flip side, a breakdown of 1.2115 (high Jan.20) would aim for 1.2100 and 1.2000 (psychological levels).
USD/CAD in multi-year tops
After climbing to levels just shy of the 1.2400 barrier earlier on, the pair is now giving away some gains and returning to the vicinity of 1.2370. Spot was catapulted from the mid-1.2000s following the unexpected decision of the BoC to cut the refi rate by 25 bps to 0.75%. In the subsequent press conference, Governor Stephen Poloz stressed that the rate cut was aimed to counteract the disinflationary pressures and in response to the ongoing slump in the crude oil prices.
In the technical space, analysts at TD Securities added, “The move up in USDCAD does not look over extended technically nor does it look fundamentally unjustified… We think USDCAD is heading towards 1.30 in the next few months from a technical point of view”.
USD/CAD levels to watch
The pair is now up 2.17% at 1.2370 with the next resistance at 1.2400 and 1.2500 (psychological levels) followed by 1.2715 (high April 2009). On the flip side, a breakdown of 1.2115 (high Jan.20) would aim for 1.2100 and 1.2000 (psychological levels).