Back
25 Feb 2015
USD/CAD set to test 1.2275 in the short-term – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst,Omkar Godbole, uses macro and technicals to explain that USD/CAD might test 1.2275 by this weekend, provided oil prices don’t register a sharp fall.
Key Quotes
“The USD/CAD pair fell to 1.2430 levels on Wednesday from a high of 1.2662 levels seen on Tuesday as markets believe the Bank of Canada would not cut interest rates in the next meeting.”
“The pair is likely to extend losses to 1.2275 levels by Friday as –
The CAD should continue to gain against the USD as markets unwind interest rate cut bets ahead of the BOE meeting next week.
..the doors are open for an up move in crude prices if the DOE data surprised by showing a comparatively less build up of crude stocks in the US. Thus, CAD stands to gain.
Weak US data expected – A weak inflation and growth numbers could drag down the yields to below 1.9% and weaken the US dollar.”
“On Technical charts, the CAD failed to rise above the falling trend line on the daily charts and has extended losses to trade below the 5-DMA and 10-DMA.”
“By the weekend the pair could drop to the 50-DMA seen at 1.2280.”
“The bearish view is at a risk of a sharp fall in Crude prices. However, the reaction to the API data has been muted.”
“Furthermore, weakness in USD could provide support to Crude prices and help CAD gain strength on unwinding of interest rate cut bets.”
Key Quotes
“The USD/CAD pair fell to 1.2430 levels on Wednesday from a high of 1.2662 levels seen on Tuesday as markets believe the Bank of Canada would not cut interest rates in the next meeting.”
“The pair is likely to extend losses to 1.2275 levels by Friday as –
The CAD should continue to gain against the USD as markets unwind interest rate cut bets ahead of the BOE meeting next week.
..the doors are open for an up move in crude prices if the DOE data surprised by showing a comparatively less build up of crude stocks in the US. Thus, CAD stands to gain.
Weak US data expected – A weak inflation and growth numbers could drag down the yields to below 1.9% and weaken the US dollar.”
“On Technical charts, the CAD failed to rise above the falling trend line on the daily charts and has extended losses to trade below the 5-DMA and 10-DMA.”
“By the weekend the pair could drop to the 50-DMA seen at 1.2280.”
“The bearish view is at a risk of a sharp fall in Crude prices. However, the reaction to the API data has been muted.”
“Furthermore, weakness in USD could provide support to Crude prices and help CAD gain strength on unwinding of interest rate cut bets.”