USD/CAD Off-Highs, Around 1.3060 Ahead of Canadian GDP

USD/CAD Off-Highs, Around 1.3060 Ahead of Canadian GDP

31 May 2016, 10:47
Roberto Jacobs
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USD/CAD Off-Highs, Around 1.3060 Ahead of Canadian GDP

The US dollar keeps the upper edge against its Canadian counterpart for the third straight session, now pushing USD/CAD back towards 1.3050 level.

USD/CAD trades below 10-DMA at 1.3068

Currently, the USD/CAD pair jumps +0.11% to 1.3065, retreating from daily highs previously posted at 1.3079. The USD/CAD pair remains underpinned as the US dollar halted its corrective mode and resumed the recent bullish momentum backed by increased June/July Fed rate hike calls.

Moreover, subdued trading activity seen in the oil prices also keeps the Loonie on the back foot. Both crude benchmarks are seen trading moderately flat as markets remain wary ahead of the weekly crude stockpiles report and the June 2 OPEC meeting.

Looking ahead, the main risk event for the major today remains the Canadian GDP figures, which is estimated to stay flat at 0.0%, after a slight contraction of 0.1% in February. More so, a series of US macro news will be also closely eyed for further momentum on the USD moves.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3100 (round number) and 1.3135/55 (May 25 & 19 High). To the downside, immediate support might be located at 1.3031 (5-DMA) and below that at 1.3000 (round number/ psychological levels).


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