USDCAD Movement
For the 24 hours to 23:00 GMT, USD declined 0.55% against the CAD, on Friday, to close at 0.9809, following the release of weaker-than-forecast US first quarter growth data, while expectations for higher interest rates buoyed the Canadian Dollar.
The Canadian Dollar was boosted by expectations for an interest rate hike by the Bank of Canada (BoC) in the coming months, after the central bank indicated earlier this month that the rate of inflation is rising more rapidly than previously expected. In a speech on Friday, the BoC Governor, Mark Carney reiterated that central bank forecast for economic growth of 2.4% this year.
In the Asian session, at GMT0300, the pair is trading at 0.9807, with the USD trading slightly lower from Friday’s close.
The pair is expected to find support at 0.9782, and a fall through could take it to the next support level of 0.9756. The pair is expected to find its first resistance at 0.9852, and a rise through could take it to the next resistance level of 0.9896.
Trading trends in the pair today are expected to be determined by release of gross domestic product, industrial product price and raw material price index in Canada.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
