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25 May 2015
USD/CAD trims gains, back below 1.23
FXStreet (Mumbai) - USD/CAD extends its upbeat momentum in the late-Asian session, albeit retreating slightly from fresh monthly highs reached on Friday at 1.2322, after the US dollar staged a solid comeback against its major competitors on upbeat US inflation data.
USD/CAD supported at 1.2280
Currently, the USD/CAD trades 0.11% higher at 1.2291, having previously posted session highs at 1.2307. The USD/CAD pair remains underpinned after the US dollar was boosted by better than forecast US core CPI print while at the same time the loonie was hit by disappointing Canadian CPI figures.
The US CPI print m/m stood at 0.1% meeting market expectations. The core inflation indicator remained rose 0.3% versus 0.2% expectations. Meanwhile, the Canadian CPI dropped back, advancing only 0.8%, after booking 1.2% in March.
Moreover, weaker oil prices on the back of stronger USD also dented the Canadian dollar, pushing USD.CAD higher. Oil is Canada’s top export product.
Meanwhile, in the day ahead, US dollar will be the main influencing factor amid low volume as US markets remain closed on a national holiday. While Fed Fischer’s speech will be closely eyes on further hints on the timing of the Fed rate-hike.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2322 levels and above which it could extend gains 1.2400 levels. To the downside immediate support might be located at 1.2278 levels, below that at 1.2200.
USD/CAD supported at 1.2280
Currently, the USD/CAD trades 0.11% higher at 1.2291, having previously posted session highs at 1.2307. The USD/CAD pair remains underpinned after the US dollar was boosted by better than forecast US core CPI print while at the same time the loonie was hit by disappointing Canadian CPI figures.
The US CPI print m/m stood at 0.1% meeting market expectations. The core inflation indicator remained rose 0.3% versus 0.2% expectations. Meanwhile, the Canadian CPI dropped back, advancing only 0.8%, after booking 1.2% in March.
Moreover, weaker oil prices on the back of stronger USD also dented the Canadian dollar, pushing USD.CAD higher. Oil is Canada’s top export product.
Meanwhile, in the day ahead, US dollar will be the main influencing factor amid low volume as US markets remain closed on a national holiday. While Fed Fischer’s speech will be closely eyes on further hints on the timing of the Fed rate-hike.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2322 levels and above which it could extend gains 1.2400 levels. To the downside immediate support might be located at 1.2278 levels, below that at 1.2200.