OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CAD sticks to recovery gains near 1.2700 handle

   •  Struggles to extend recovery momentum beyond the 1.2700 handle.
   •  Bullish oil outlook/sliding US bond yields capping gains.
   •  This week’s key macro data holds the key.

The USD/CAD pair extended Friday's tepid recovery move from 2-1/2 week lows but was seen struggling to build on its strength beyond the 1.2700 handle. 

There was not much in terms of fundamental changes or events or news to drive the pair at the start of a new trading week, with majority of today's up-move purely driven by resurgent US Dollar demand. 

Meanwhile, the latest crisis in Saudi Arabia underpinned crude oil prices and remained supportive of the commodity-linked currency - Loonie. Adding to this, a sharp retracement in the US Treasury bond yields further collaborated towards keeping a lid on any strong up-move for the major.

With the key focus on the progress over the long-awaited US tax reform bill, this week's important macro releases from the US and Canada would help investors determine the pair's near-term trajectory. 

The latest US inflation figures, along with the release of monthly retail sales data and the Fed Chair Janet Yellen's speech would be looked upon for reinforcing December rate hike move, which should eventually open room for some additional near-term gains for the major. 

Technical levels to watch

A follow-through buying interest beyond 1.2725 level could lift the pair back towards 1.2775 horizontal resistance en-route the 1.2800 round figure mark. On the flip side, sustained weakness back below 1.2675 horizontal level might now turn the pair vulnerable to test 100-day SMA strong support, currently near the 1.2600-1.2590 region.
 

Portugal Consumer Price Index (MoM) down to 0.3% in October from previous 0.9%

Portugal Consumer Price Index (MoM) down to 0.3% in October from previous 0.9%
Read more Previous

China: Real activities of the economy back strong yuan – ING

New sectors continue to drive China’s economic growth as economic fundamentals remain supportive of the CNY appreciation trend, according to Iris Pang
Read more Next
Start livechat