22 Jul 2013
USD/CAD testing lows below 1.0350
FXstreet.com (Edinburgh) - The USD/CAD continues to grind lower on Monday, extending the negative momentum from last week and currently testing multi-day lows below 1.0350.
USD/CAD eyes on US data
Ahead in the day, the Chicago Fed National Activity index is due followed by Existing Home Sales. Prior surveys expect the index to improve to 0 in June from -0.3 and home sales to rise at a monthly pace of 0.5% to 5.26 million during the same period. In the opinion of Stephen Gallo, Strategist at BMO, “Through USD weakness and the shift amongst many participants towards interpreting the Fed as ‘dovish’, we fear that FX markets are once again setting themselves up for another potential USD squeeze (this time to the topside) which will probably be triggered by any forthcoming string of significant upside surprises in US data”.
USD/CAD key levels
The pair is now losing 0.19% at 1.0345 with the next support at 1.0326 (low Jul.11). On the upside, a breakout of 1.0445 (high Jul.17) would expose 1.0449 (high Jul.11) and finally 1.0450 (Tenkan line).
USD/CAD eyes on US data
Ahead in the day, the Chicago Fed National Activity index is due followed by Existing Home Sales. Prior surveys expect the index to improve to 0 in June from -0.3 and home sales to rise at a monthly pace of 0.5% to 5.26 million during the same period. In the opinion of Stephen Gallo, Strategist at BMO, “Through USD weakness and the shift amongst many participants towards interpreting the Fed as ‘dovish’, we fear that FX markets are once again setting themselves up for another potential USD squeeze (this time to the topside) which will probably be triggered by any forthcoming string of significant upside surprises in US data”.
USD/CAD key levels
The pair is now losing 0.19% at 1.0345 with the next support at 1.0326 (low Jul.11). On the upside, a breakout of 1.0445 (high Jul.17) would expose 1.0449 (high Jul.11) and finally 1.0450 (Tenkan line).