21 Aug 2013
USD/CAD is trading higher during emerging market turmoil
FXstreet.com (Athens) - USD/CAD has advanced as loonie sinks on heightened pre-FOMC volatility
USD holds safe haven role ahead of FOMC release.
The major risk event of the day comes in the form of the FOMC minutes later today, which will provide a detailed record of the meeting held two weeks ago. Many traders are hoping that this is going to answer the “will they, won’t they” taper in September question that’s been dominating the markets in recent weeks. But as yet there’s no distinct clarity on when tapering with actually commence. So far this week has been building up to tonight’s FOMC minutes for signs that September will mark the end of the Fed’s QE as we know it. As far as risk-appetite is lost and we have no ‘signs’ of Fed’s policy, it is plausible that the ‘loonie’ is losing solid ground against its leading counter-part. Furthermore, yesterday the value of sales made by Canadian wholesalers, went down by 2.8% (versus +2.2% the previous month and instead of the estimation of -0.5%).
Technical outlook on USD/CAD
At the time of writing, the USD/CAD is trading at 1.0436, up 0.46%, not far away from its daily high of 1.0388. Traders might see the tomorrow’s release of Canadian retail sales, having an impact in the pair. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 1.0364,1.0339, 1.0313 and resistance at 1.0432, 1.0458 and 1.0484, respectively.
USD holds safe haven role ahead of FOMC release.
The major risk event of the day comes in the form of the FOMC minutes later today, which will provide a detailed record of the meeting held two weeks ago. Many traders are hoping that this is going to answer the “will they, won’t they” taper in September question that’s been dominating the markets in recent weeks. But as yet there’s no distinct clarity on when tapering with actually commence. So far this week has been building up to tonight’s FOMC minutes for signs that September will mark the end of the Fed’s QE as we know it. As far as risk-appetite is lost and we have no ‘signs’ of Fed’s policy, it is plausible that the ‘loonie’ is losing solid ground against its leading counter-part. Furthermore, yesterday the value of sales made by Canadian wholesalers, went down by 2.8% (versus +2.2% the previous month and instead of the estimation of -0.5%).
Technical outlook on USD/CAD
At the time of writing, the USD/CAD is trading at 1.0436, up 0.46%, not far away from its daily high of 1.0388. Traders might see the tomorrow’s release of Canadian retail sales, having an impact in the pair. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 1.0364,1.0339, 1.0313 and resistance at 1.0432, 1.0458 and 1.0484, respectively.