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USD/CAD muted post-data, near 1.1170

FXStreet (Edinburgh) - USD/CAD is meandering in a narrow range on Tuesday between 1.1150 and 1.1190 ahead of the key FOMC minutes.

USD/CAD eyes on the FOMC

After a brief dip towards the 1.1100 handle on Monday, spot managed to pick up pace and regain the mid-1.1100s and beyond although the bullish attempts stalled in the 1.1190-1.1200 band so far. Canadian Housing Starts expanded in line with market consensus at an annual pace of 197.3K in September, having a flat impact on the pair; later on during the European evening, the FOMC will publish its minutes in what will be the most relevant event this week. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “funds clearly struggled to hold on to gains towards 1.12 yesterday and we think the short-term picture suggests some vulnerability to the downside still. Intraday support around 1.1140/50 may hold up ahead of the FOMC minutes this afternoon but we think USDCAD is likely to push below 1.11 and head towards 1.10 at some point in the next few days”.

USD/CAD key levels

The pair is now losing 0.04% at 1.1170 with the immediate support at 1.1129 (low Oct.7) followed by 1.1111 (low Oct.6) and finally 1.1100 (psychological level). On the other hand, a break above 1.1196 (high Oct.7) would open the door to 1.1210 (61.8% of 1.1274-1.1111) and then 1.1265 (high Oct.6).

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