16 Jul 2014
USD/CAD capped by 1.0770
FXStreet (Edinburgh) - The USD/CAD is extending the overnight sideline pattern just below the 1.0770 level ahead of the BoC meeting.
USD/CAD focus on BoC
Spot is meandering the upper band of the recent range following softer-than-expected Canadian labour market figures released last Friday. Next of relevance for the CAD will be the BoC monetary policy meeting due today and inflation figures on Friday. Market consensus expects the central bank to keep the recent dovish tone, which would collaborate with the current upside. “Short-term trend momentum is positive and the limited correction in the market since last week’s surge higher suggests willing buyers on modest dips. We look for firm support towards the 1.0725 are from here”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
As of writing the pair is up 0.10% at 1.0770 and a breakout of 1.0813 (200-d MA) would target 1.0814 (low May 8) en route 1.0831 (61.8% of 1.0962-1.0620). On the downside, the initial support aligns at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.06720 (low Jul.3).
USD/CAD focus on BoC
Spot is meandering the upper band of the recent range following softer-than-expected Canadian labour market figures released last Friday. Next of relevance for the CAD will be the BoC monetary policy meeting due today and inflation figures on Friday. Market consensus expects the central bank to keep the recent dovish tone, which would collaborate with the current upside. “Short-term trend momentum is positive and the limited correction in the market since last week’s surge higher suggests willing buyers on modest dips. We look for firm support towards the 1.0725 are from here”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
As of writing the pair is up 0.10% at 1.0770 and a breakout of 1.0813 (200-d MA) would target 1.0814 (low May 8) en route 1.0831 (61.8% of 1.0962-1.0620). On the downside, the initial support aligns at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.06720 (low Jul.3).