25 May 2015
USD/CAD hurt and a risky play - Growth Aces
FXStreet (Guatemala) - The Growth Aces Research Team at Growth Aces explained that USD/CAD has been hurt by CPI data and falling oil prices.
Key Quotes:
"CPI data hurt the loonie on Friday. The USD/CAD broke above recent highs near 1.2260 and 38.2% fibo of 1.2835-1.1920 slide. The rate is going towards the resistance level at 1.2328 (high on April 16). Brent crude oil futures dipped below USD 65 a barrel as the USD strengthened today, with a public holiday in the United States and much of Europe keeping oil trading volumes muted. The CAD is highly correlated with oil prices and a fall in crude prices also added to pressure on the loonie."
"The Bank of Canada meets next Wednesday and is widely expected to keep interest rates unchanged at 0.75%. We do not expect surprises in the statement. It will probably reflect recent encouraging remarks made by BOC governor Poloz."
"We stay sideways on the USD/CAD after our short position hit the stop-loss at 1.2290. We will be looking to get short on higher levels, but the trade seems too risky now."
Key Quotes:
"CPI data hurt the loonie on Friday. The USD/CAD broke above recent highs near 1.2260 and 38.2% fibo of 1.2835-1.1920 slide. The rate is going towards the resistance level at 1.2328 (high on April 16). Brent crude oil futures dipped below USD 65 a barrel as the USD strengthened today, with a public holiday in the United States and much of Europe keeping oil trading volumes muted. The CAD is highly correlated with oil prices and a fall in crude prices also added to pressure on the loonie."
"The Bank of Canada meets next Wednesday and is widely expected to keep interest rates unchanged at 0.75%. We do not expect surprises in the statement. It will probably reflect recent encouraging remarks made by BOC governor Poloz."
"We stay sideways on the USD/CAD after our short position hit the stop-loss at 1.2290. We will be looking to get short on higher levels, but the trade seems too risky now."