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5 Mar 2014
USD/CAD bounces at 1.1050 ahead of BoC decision
FXStreet (San Francisco) - The US Dollar found support at 1.1050 against its Canadian counterpart after declining from 1.1080 following the weak ADP February report but ahead of the Bank of Canada interest rate decision.
The ADP employment report showed that the US added 139,000 new jobs in February, a weak reading below expectations of 160,000. January figure was revised down to 127,000. On the Canadian side, the Bank of Canada is expected to hold its interest rate at 1% as the central bank wants to have a lower CAD.
“We see little scope for change at this weeks meeting, and thus a muted CAD reaction ahead of employment figures in the US and Canada on Friday. Risks likely favour a statement that reads moderately positive for the CAD”, assessed strategists Brian Daingerfield and Paul Robson at RBS.
USD/CAD sentiment
Then, the USD/CAD bounced back to 1.1080, where it remains now. The pair is performing 0.18% negative in the day; the short term perspective are now slightly bullish according to the FXStreet trend index in the 15-minute. CCI and Momentum are pointing to the north while the MACD is neutral and the Stochastic is bearish.
On the upside, the first up-barrier aligns at 1.1108 (high Mar 4) ahead of 1.1148 (high Feb 28) and then 1.1160 (high Feb 27). On the downside, the USD/CAD would face supports at the mentioned 1.1050 ahead of 1.1040 and 1.1000.
The ADP employment report showed that the US added 139,000 new jobs in February, a weak reading below expectations of 160,000. January figure was revised down to 127,000. On the Canadian side, the Bank of Canada is expected to hold its interest rate at 1% as the central bank wants to have a lower CAD.
“We see little scope for change at this weeks meeting, and thus a muted CAD reaction ahead of employment figures in the US and Canada on Friday. Risks likely favour a statement that reads moderately positive for the CAD”, assessed strategists Brian Daingerfield and Paul Robson at RBS.
USD/CAD sentiment
Then, the USD/CAD bounced back to 1.1080, where it remains now. The pair is performing 0.18% negative in the day; the short term perspective are now slightly bullish according to the FXStreet trend index in the 15-minute. CCI and Momentum are pointing to the north while the MACD is neutral and the Stochastic is bearish.
On the upside, the first up-barrier aligns at 1.1108 (high Mar 4) ahead of 1.1148 (high Feb 28) and then 1.1160 (high Feb 27). On the downside, the USD/CAD would face supports at the mentioned 1.1050 ahead of 1.1040 and 1.1000.