8 Jul 2013
USD/CAD in negative territory
FXstreet.com (London) - USD/CAD started the day off on the wrong foot.
USD/CAD started by making an initial drop of 20 pips from 1.0585/90 territories, and has continued to slide to now record a low on the day of 1.0546. The USD is trading a little lower overall today but, following last week’s big shifts to reflect central bank policy biases in Europe and the decent US NFP number, the USD (DXY) index remains near its best levels in three years, said research teams at TD Securities. They continued to mention that Canada’s employment numbers Friday were not good enough to prevent the CAD slipping to their long-held target of 1.06 (a week or so behind schedule). Data today presented Canadian Building Permits mom for the month of May in the green. Next we get the Business Outlook Survey and the Senior Loan Officer survey from the BoC which provide important anecdotal insights on the economy and credit conditions locally. "The real focus here is the July 17th rate decision, however", said Research Team at TD Securities.
USD/CAD technically bullish
Research teams at TD Securities said they remain longer-term USD/CAD bulls. “We think 1.10/1.11 is reachable in the next 6 months or so and while the broader trend here remains constructive, the risk of a sizeable correction remains.” They said the market is pressing up against the top of the bull trend channel in place since the start of the year and is clearly struggling to accelerate further at the moment. “Key support is 1.0421 now. Correction pressure will build below here.”
USD/CAD started by making an initial drop of 20 pips from 1.0585/90 territories, and has continued to slide to now record a low on the day of 1.0546. The USD is trading a little lower overall today but, following last week’s big shifts to reflect central bank policy biases in Europe and the decent US NFP number, the USD (DXY) index remains near its best levels in three years, said research teams at TD Securities. They continued to mention that Canada’s employment numbers Friday were not good enough to prevent the CAD slipping to their long-held target of 1.06 (a week or so behind schedule). Data today presented Canadian Building Permits mom for the month of May in the green. Next we get the Business Outlook Survey and the Senior Loan Officer survey from the BoC which provide important anecdotal insights on the economy and credit conditions locally. "The real focus here is the July 17th rate decision, however", said Research Team at TD Securities.
USD/CAD technically bullish
Research teams at TD Securities said they remain longer-term USD/CAD bulls. “We think 1.10/1.11 is reachable in the next 6 months or so and while the broader trend here remains constructive, the risk of a sizeable correction remains.” They said the market is pressing up against the top of the bull trend channel in place since the start of the year and is clearly struggling to accelerate further at the moment. “Key support is 1.0421 now. Correction pressure will build below here.”