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22 Aug 2014
USD/CAD spiked to 1.0980 on data
FXStreet (Edinburgh) - The Canadian dollar has abruptly depreciated just beyond 1.0980 vs. the greenback on Friday, although the USD/CAD quickly returned to the mid-10900s.
USD/CAD neutral post-CPI
The quick climb to fresh tops around 1.0980 proved to be ephemeral, as spot is now hovering over the 1.0950/45 region. Consumer prices in the Canadian economy expanded 2.1% on a yearly basis and contracted 0.2% inter-month, both prints missing previous estimates at 2.3% and -0.1%, respectively. Core prices, gauged by the BoC also disappointed traders, coming in at 1.7% YoY and -0.1% MoM. The positive news followed a better-than-expected Retail Sales figures, advancing 1.1% in June. Camilla Sutton, Chief FX Strategist at Scotiabank commented that “short term technicals are mixed with some studies warning of upside risk and others warning of downside risk, leading to a range bound environment”.
USD/CAD levels to watch
At the moment the pair is up 0.10% at 1.0952 and a breakout of 1.0987 (high Aug.21) would open the door to1.1007 (high May 2) and then 1.1053 (high Apr.23). On the flip side, the next support aligns at 1.0933 (low aug.20) ahead of 1.0899 (high Aug.18) and finally 1.0870 (200-d MA).
USD/CAD neutral post-CPI
The quick climb to fresh tops around 1.0980 proved to be ephemeral, as spot is now hovering over the 1.0950/45 region. Consumer prices in the Canadian economy expanded 2.1% on a yearly basis and contracted 0.2% inter-month, both prints missing previous estimates at 2.3% and -0.1%, respectively. Core prices, gauged by the BoC also disappointed traders, coming in at 1.7% YoY and -0.1% MoM. The positive news followed a better-than-expected Retail Sales figures, advancing 1.1% in June. Camilla Sutton, Chief FX Strategist at Scotiabank commented that “short term technicals are mixed with some studies warning of upside risk and others warning of downside risk, leading to a range bound environment”.
USD/CAD levels to watch
At the moment the pair is up 0.10% at 1.0952 and a breakout of 1.0987 (high Aug.21) would open the door to1.1007 (high May 2) and then 1.1053 (high Apr.23). On the flip side, the next support aligns at 1.0933 (low aug.20) ahead of 1.0899 (high Aug.18) and finally 1.0870 (200-d MA).