OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CAD jumps to 1.3400 neighborhood

   •  A modest USD uptick helps the pair to regain positive traction on Friday.
   •  Weaker crude oil prices undermine Loonie and provide an additional boost.
   •  Traders now eye US monthly retail sales data for some fresh impetus.

The USD/CAD pair regained positive traction on Friday and has now moved within striking distance of reclaiming the 1.3400 handle. 

After a brief consolidation phase, the pair picked up the pace during the early European session and was being supported by a modest US Dollar uptick on the last trading day of the week.

An expected Fed rate hike move next week, coupled with the prevalent risk-off mood underpinned the greenback and turned out to be one of the key factors driving the pair higher. 

Adding to this, a mildly softer tone around crude oil prices dampened demand for the commodity-linked currency - Loonie and further collaborated to the pair's goodish intraday up-move.

With a combination of positive forces lifting the pair back closer to weekly tops, a follow-through positive momentum, led by some technical buying above the 1.3400 handle, now looks a distinct possibility.

Later during the early North-American session, the US monthly retail sales data, a key highlight of today's economic docket, will now be looked upon for some short-term trading impetus.

Technical levels to watch

On a sustained move beyond the 1.3400 handle, the pair is likely to aim towards retesting 18-month tops, around the 1.3445 region. On the flip side, the 1.3360-50 region now seems to act as a strong support, which if broken might turn the pair vulnerable to aim towards challenging the 1.3300 handle.
 

German flash manufacturing PMI hits 33-month lows of 51.5 in Dec

German business activity grew at the weakest pace in thirty-three months this month, the latest manufacturing activity report from IHS/Markit research
Read more Previous

Italy Industrial Sales n.s.a. (YoY): 2% (September) vs previous 3.9%

Italy Industrial Sales n.s.a. (YoY): 2% (September) vs previous 3.9%
Read more Next
Start livechat