USD/CAD sits at 2-1/2 week tops, above 1.31 handle ahead of US/CA macro data


   •  A strong follow-through USD upsurge helps build on the overnight positive move.
   •  Subdued oil prices underpin Loonie and remain supportive of the momentum.
   •  Today’s US CPI & Canadian jobs data might help determine the near-term trajectory.

The USD/CAD pair continued gaining positive traction for the second consecutive session and climbed to 2-1/2 week tops on Friday, levels beyond the 1.3100 handle.

Chicago Fed President Charles Evans' hawkish comments on Thursday added fuel to the ongoing US Dollar bullish trend and helped the pair to catch some strong bids near the key 1.3000 psychological mark. 

In an interview, Evans, a known dove, said that the US economy is performing very well and continued growth has cleared the way for one or two more interest rate hikes in 2018. 

A strong follow-through USD upsurge, lifting the key US Dollar Index to the 96.00 handle, or over 13-month tops, was seen as one of the key factors driving the pair higher through the early European session on Friday. 

This coupled with a subdued action around crude oil prices further undermined the commodity-linked currency - Loonie and remained supportive of the pair's positive momentum back above the 1.3100 handle. 

Moving ahead, today's economic docket, highlighting the latest US consumer inflation figures and Canadian employment details, might now assist investors to determine the pair's next leg of directional move. 

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the 1.3140-50 region, above which the pair is likely to aim towards reclaiming the 1.3200 handle before eventually darting towards its next major hurdle near the 1.3265-70 supply zone. 

On the flip side, weakness back below the 1.3100-1.3090 area now seems to find strong support near mid-1.3000s, which if broken might turn the pair to break below the 1.30 handle and head towards retesting 100-day SMA support near the 1.2965 region.
 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: traders set to position ahead of Fed

The EUR/USD pair moderated its advance on Friday, compliments to stronger-than-expected US data, finishing the week anyway with gains around 1.1070. Better-than-expected US data released Friday brought relief to USD bulls.

EUR/USD News

GBP/USD: Brexit optimism keeps bulls in the drivers’ seat

The GBP/USD pair has advanced for a second consecutive week, reaching Friday 1.2505, its highest since last July, and settling not far below this last. Fading odds for a hard-Brexit continue to underpin the Pound.

GBP/USD News

USD/JPY: further gains depending on risk-related sentiment

The USD/JPY pair settled above the 108.00 level for the first time since late July, closing substantially higher for a third consecutive week.  Demand for the safe-haven yen continued to be undermined.

USD/JPY News

Gold: Down for third straight week, on the defensive ahead of the Fed

Gold is set to end lower for the third straight week and will likely remain on the defensive in the run-up to Wednesday's Federal Open Market Committee (FOMC) meeting. A dovish surprise will likely put a strong bid under the yellow metal.

Gold News

The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more

Forex MAJORS

Cryptocurrencies

Signatures