USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 1.03% against the CAD to close at 1.1243.
The Canadian Dollar was weighed down by the growing speculation that the Fed’s decision to scale back its stimulus package by another $10 billion, would influence the Bank of Canada to cut interest rates in order to spur economic growth, however not faster than the US Federal Reserve. The Loonie further came under pressure after Canada’s Finance Minister Jim Flaherty announced his resignation who has played a significant role in safeguarding Canada’s economy.
On the economic front, wholesales sales in Canada rose 0.8% (MoM) in January, following a 1.3% fall in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.1249, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.1154, and a fall through could take it to the next support level of 1.106. The pair is expected to find its first resistance at 1.1308, and a rise through could take it to the next resistance level of 1.1368.
Amid lack of major economic releases in Canada, traders are eyeing global economic news for further guidance in the loonie.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
