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USD/CAD flirting with 1.29 post-data

FXStreet (Edinburgh) - USD/CAD has quickly faded the initial spike to session tops near 1.2930, returning to the boundaries of the key support at 1.2900.

USD/CAD trims gains on oil recovery

The pair is fading the earlier advance to the 1.2925/30 band today, after Canadian Manufacturing Shipments have contracted less than expected 0.2% MoM during August.

Collaborating with the now better tone in CAD, crude oil prices have reverted the negative start and are now back to the positive territory, taking the barrel of West Texas Intermediate to the vicinity of the $47.00 mark.

Next on tap in the US docket will be Industrial Production, followed by Capacity Utilization and the sentiment index gauged by Reuters/Michigan.

USD/CAD levels to consider

As of writing, the pair is up 0.28% at 1.2901 with the initial barrier at 1.3000 (psychological level) followed by 1.3095 (Fibo 23.6% of 1.1916-1.3458) and finally 1.3171 (55-day MA). On the downside, a break below 1.2824 (uptrend from June low) would expose 1.2800 (psychological level) and then 1.2687 (50% Fibo of 1.1916-1.3459).

Brace for weak US industrial production data – TDS

Research Team at TDS, expect the US industrial production data will see a downside risk to the consensus expectation for a 0.2% m/m decline as regional and aggregate manufacturing PMIs have slipped.
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ECB speakers continue to suppress EURUSD strength – BNP

Research Team at BNP Paribas, think that ECB’s push back against EUR strength and prospects for further easing remain a key hurdle to any upside in EURUSD and note dovish comments from governing council member Nowotny helped knock the currency lower on Thursday.
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