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USD/CAD retreats from highs

FXStreet (Edinburgh) - After climbing to session highs near 1.1320 on Tuesday, USD/CAD is now easing some ground to the vicinity of 1.1300 the figure.

USD/CAD eyes on US, CAD data

The pair is prolonging its weekly upside for the second consecutive session, up from lows in the proximity of the psychological support at 1.1200 and looking to regain ground above 1.1300. The pair will remain under pressure however, as US GDP Annualized during the third quarter is due later (3.3% exp.), ahead of Canadian Retail Sales in September, expected at 0.5%. “In our view, the BoC could find itself hiking rates ahead of the Fed who we expect will keep policy rates steady until Q4 2015. For this reason we see scope for some outperformance of the CAD vs. the USD into the middle of next year and see scope for a temporary drop towards the USD/CAD1.10 area on a 6-9 month view”, suggested Jane Foley, Senior Currency Analyst at Rabobank.

USD/CAD relevant levels

As of writing the pair is up 0.14% at 1.1304 with the next hurdle at 1.1326 (high Nov.21) ahead of 1.1329 (50% of 1.1466-1.1191) and finally 1.1369 (high Nov.20). On the downside, a break below 1.1278 (low Nov.25) would aim for 1.1225 (low Nov.24) and then 1.1191 (low Nov.21).

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