USD/CAD surrenders gains, back to 1.4120

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is now gaining some pips after hitting fresh multi-year lows vs. its American peer earlier in the session, with USD/CAD hovering over 1.4125/20.

    USD/CAD deflates from highs, focus on Poloz

    Spot has faded part of the daily upside after BoC Governor S.Poloz has argued that core consumer prices are ‘overstating’ the underlying trend of inflation, stressing at the same time that a lower CAD is fuelling higher import prices. He further added that a pick up in the non-resource sector will take time.

    On another direction, US Initial Claims came in at 277K during the week ended on January 1, almost matching consensus at 275K.

    USD/CAD key levels

    At the moment the pair is up 0.28% at 1.4118 facing the next resistance levels at 1.4166 (high Aug.22 2003) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003). On the downside, a breach of 1.3633 (3-month uptrend) would target 1.3513 (55-day sma) and then 1.3364 (100-day sma).
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