5 Nov 2013
USD/CAD slightly lower due to the US dismal consumer spending report
FXstreet.com (Athens) – The USD/CAD grinds slightly lower after the US Redbook weekly sales released at dismal levels.
The USD/CAD was hovering around 1.0453 area, before the release of the US consumer spending report, which revealed a second weekly soft US consumer spending report regarding for the US economy. Thus, it could be well taken for granted that the Fed will remain on hold since the continuing soft data does not leave the US Central Bank much option. Briefly, the cross lost a slight ground as of 20 pips (1.0424), but the past couple of minutes managed to pare the largest portion of its losses, hovering around 1.0440 area.
Technical Aspects on the USD/CAD
It is noteworthy to mention that a decent daily break of the support of 1.0422 (23.6% Fib ret.) could expose the pair further downwards to the area as of 1.0376 (38.2% Fib). Greg Moore on behalf of TD Securities mentions that “USD/CAD tested the 1.04 level yesterday but there was no real appetite to push the USD significantly lower and that might well be the extent of the USD dip for the moment. In the context of relatively subdued ranges elsewhere, the USD/CAD rebound looked quite impressive to us and we think the market has done enough to signal a firmer short-term base at 1.0400/20 now.”
The USD/CAD was hovering around 1.0453 area, before the release of the US consumer spending report, which revealed a second weekly soft US consumer spending report regarding for the US economy. Thus, it could be well taken for granted that the Fed will remain on hold since the continuing soft data does not leave the US Central Bank much option. Briefly, the cross lost a slight ground as of 20 pips (1.0424), but the past couple of minutes managed to pare the largest portion of its losses, hovering around 1.0440 area.
Technical Aspects on the USD/CAD
It is noteworthy to mention that a decent daily break of the support of 1.0422 (23.6% Fib ret.) could expose the pair further downwards to the area as of 1.0376 (38.2% Fib). Greg Moore on behalf of TD Securities mentions that “USD/CAD tested the 1.04 level yesterday but there was no real appetite to push the USD significantly lower and that might well be the extent of the USD dip for the moment. In the context of relatively subdued ranges elsewhere, the USD/CAD rebound looked quite impressive to us and we think the market has done enough to signal a firmer short-term base at 1.0400/20 now.”