USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.74% against the CAD to close at 1.2971.
Yesterday, the BoC Deputy Governor, Lynn Patterson, indicated that the Canadian economy will take more than two years to recover from the commodity price shock. Further, she predicted that a reduction in aggregate household earnings due to falling commodity prices will extend into 2017, which in turn will slow consumer spending and eventually result as a drag on economic growth.
In the Asian session, at GMT0300, the pair is trading at 1.2999, with the USD trading 0.22% higher from yesterday’s close.
The pair is expected to find support at 1.2913, and a fall through could take it to the next support level of 1.2827. The pair is expected to find its first resistance at 1.3084, and a rise through could take it to the next resistance level of 1.3169.
Moving ahead, investors will look forward to Canada’s GDP data for January, scheduled to release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
