USD/CAD jumps to five-day highs above 1.3600 and loses strength
|- Canadian dollar spikes lower across the board despite economic data and higher crude oil prices.
- USD/CAD retreats modestly to 1.3570 as US Dollar pulls back.
The USD/CAD jumped to 1.3603, reaching the highest level since last Thursday and then pulled back to the 1.3570/1.3585 range. The move higher took placed despite better-than-expected Canadian economic data.
The loonie is the worst performer among the commodity block. The Ivey PMIs in Canada showed a strong rebound in June to 58.2, above the 25.1 expected but CAD ignored the numbers. Not event crude oil prices are helping the loonie. The WTI barrel gains 0.50% and is trading near $41.00.
Wall Street indexes are posting mixed results and gold is at fresh multi-year highs near $1800/oz. Despite all, USD/CAD is holding onto daily gains as it trades at 1.3585, up 50 pips for the day, but off highs.
Levels to watch
On the upside, a consolidation above 1.3590 in USD/CAD would clear the way for another test of 1.3600 and beyond. The next resistance is seen at 1.3625 (last week high). On the flip side, 1.3550/55 is the lower limit of the current range and also the 20-SMA in 4-hour chart, so a break lower would expose 1.3515 (weekly low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.