20 Jun 2014
USD/CAD drops to 1.0760
FXStreet (Edinburgh) - The CAD is gathering steam against the greenback on Friday, dragging the USD/CAD to test 5-month lows around 1.0760.
USD/CAD weaker post-BoC
Spot slumped more than 60 pips after consumer prices in Canada surpassed expectations during May, rising at an annual pace of 2.3% and 0.5%; Core prices followed suit, up 1.7% over the last twelve months and 0.5% on a monthly basis. Further data showed Canadian Retail Sales expanding 1.1% in April and 0.7% excluding Autos, vs. forecasts for 0.6% and 0.3%, respectively. “A sustained push under 1.08 opens up the downside for the low 1.07s. Daily resistance is obvious; 1.09 needs to be taken out for the USD to rally”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
At the moment the pair is retreating 0.55 % at 1.0757 and a breakdown of 1.0737 (high Dec.20) would target 1.0730 (50% of 1.0182-1.1279) en route to 1.0654 (low Jan.7). On the upside, the initial hurdle aligns at 1.0898 (high Jun.18) followed by 1.0918 (daily cloud base) and finally 1.0922 (high Jun.10).
USD/CAD weaker post-BoC
Spot slumped more than 60 pips after consumer prices in Canada surpassed expectations during May, rising at an annual pace of 2.3% and 0.5%; Core prices followed suit, up 1.7% over the last twelve months and 0.5% on a monthly basis. Further data showed Canadian Retail Sales expanding 1.1% in April and 0.7% excluding Autos, vs. forecasts for 0.6% and 0.3%, respectively. “A sustained push under 1.08 opens up the downside for the low 1.07s. Daily resistance is obvious; 1.09 needs to be taken out for the USD to rally”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
At the moment the pair is retreating 0.55 % at 1.0757 and a breakdown of 1.0737 (high Dec.20) would target 1.0730 (50% of 1.0182-1.1279) en route to 1.0654 (low Jan.7). On the upside, the initial hurdle aligns at 1.0898 (high Jun.18) followed by 1.0918 (daily cloud base) and finally 1.0922 (high Jun.10).