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31 Jul 2015
USD/CAD tests 1.3000 post-GDP
FXStreet (Edinburgh) - After an ephemeral test of 1.3100 the figure, USD/CAD has quickly returned to the 1.3000 neighbourhood.
USD/CAD erodes gains after data
The poor Canadian GDP figures for the month of May showed a contraction of 0.2% vs. a flat reading expected and April’s drop of 0.1%. However, the weakness around the CAD has been eclipsed by the deeper retracement of the greenback following a miserable print from the Employment Cost Index, rising 0.2% during the second quarter, the smallest increase since 1982.
Spot touched the 1.3100 handle soon after the releases, just to revert the movement and come back around 1.3030. Further Canadian weakness is likely ahead, as market participants could start to price in another rate cut by the BoC in light of the second consecutive month of economic contraction.
USD/CAD key levels
As of writing the pair is advancing 0.02% at 1.3004 with the initial hurdle at 1.3097 (high Jul.31) ahead of 1.3103 (high Jul.24). On the other hand, a break below 1.2990 (low Jul.31) would aim for 1.2940 (low Jul.30) and finally 1.2861 (low Jul.29).
USD/CAD erodes gains after data
The poor Canadian GDP figures for the month of May showed a contraction of 0.2% vs. a flat reading expected and April’s drop of 0.1%. However, the weakness around the CAD has been eclipsed by the deeper retracement of the greenback following a miserable print from the Employment Cost Index, rising 0.2% during the second quarter, the smallest increase since 1982.
Spot touched the 1.3100 handle soon after the releases, just to revert the movement and come back around 1.3030. Further Canadian weakness is likely ahead, as market participants could start to price in another rate cut by the BoC in light of the second consecutive month of economic contraction.
USD/CAD key levels
As of writing the pair is advancing 0.02% at 1.3004 with the initial hurdle at 1.3097 (high Jul.31) ahead of 1.3103 (high Jul.24). On the other hand, a break below 1.2990 (low Jul.31) would aim for 1.2940 (low Jul.30) and finally 1.2861 (low Jul.29).