USD/CAD: eyes for 1.36 handle?
Currently, USD/CAD is trading at 1.3519, up 0.44% on the day, having posted a daily high at 1.3524 and low at 1.3434.
USD/CAD has been making tracks to the upside and out of the recent consolidation of the 1.3780 sell-off from the start of May’s business. The GDP print for Q1 was a miss at 3.7% vs 3.9% expected annualised Q/Q fueling the upside. “Risk is elevated as market participants consider the growth figures in the context of the BoC’s recent shift in tone, the narrowing output gap and the implications for the July policy decision and MPR forecast update,” explained analysts at Scotiabank. From the US, the Beige Book was released but was non-eventful while markets prefer to hold out for the nonfarm payrolls at the end of the week as next major catalyst for the dollar.
“The recent consolidation has remained largely confined to the area between two key trend lines—specifically the ascending trend line drawn from the February-April lows (support just above 1.34) and the descending trend line drawn from the December-March lows (resistance around 1.3460), ” explained analysts at Scotiabank, adding, “the resolution will be crucial to the near-term path, with risk of a push to either the low 1.33s or the mid-1.35-1.36 area.”