OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CAD sidelined around 1.2770, US docket eyed

  • Spot is consolidating below 1.2800.
  • Weekly rally stays well and sound so far.
  • US data next on tap, BoC Review later.

The greenback is posting decent gains vs. its Canadian neighbor during the European afternoon, prompting USD/CAD to hover over the 1.2770/80 band.

USD/CAD looks to data, BoC

Spot closed in the positive territory in three out of the last four sessions, prolonging the rebound from  last week’s lows in the boundaries of the 1.2660 area, and always on the back of a persistent selling bias around the Canadian Dollar.

The US-CA yield spread differentials, particularly in the shorter end of the curve, continues to favour the buck and thus keep sustaining the up move in USD/CAD. In fact the US 2-year reference is trading in multi-year tops above the 1.71% level, while its Canadian peer navigates 3-week peaks above the 1.46% handle.

Looking ahead, US initial claims is next on tap along with the Philly Fed manufacturing index and speeches by Cleveland Fed. L.Mester (2018 voter, hawkish), FOMC’s L.Brainard (permanent voter, dovish) and Atlanta Fed R.Kaplan (voter, hawkish).

Data wise in Canada, manufacturing shipments for the month of September are due ahead of foreign transactions and the BoC’s Review.

USD/CAD significant levels

As of writing the pair is gaining 0.02% at 1.2765 facing the initial hurdle at 1.2821 (high Nov.7) seconded by 1.2918 (high Oct.27) and finally 1.2927 (50% Fibo of the 2017 drop). On the downside, a breach of 1.2664 (low Nov.19) would aim for 1.2579 (100-day sma) and then 1.2515 (55-day sma).

NZD/USD bears remain in full control, now eyeing multi-month lows

   •  Weighed down by surging US bond yields.     •  US tax bill headlines to remain in focus.  The NZD/USD pair remained heavily offered through th
Read more Previous

United States Initial Jobless Claims above forecasts (235K) in November 10: Actual (249K)

United States Initial Jobless Claims above forecasts (235K) in November 10: Actual (249K)
Read more Next
Start livechat