FxWirePro: USD/CAD outlook weaker on renewed downside pressure
The USD/CAD pair continued to dip lower on Tuesday as Canadian dollar was buoyant after comments by Bank of Canada Governor Stephen Poloz supported the view that the central bank could raise interest rates sooner than pr…
The USD/CAD pair continued to dip lower on Tuesday as Canadian dollar was buoyant after comments by Bank of Canada Governor Stephen Poloz supported the view that the central bank could raise interest rates sooner than previously thought.
The hawkish comments sent the Canadian dollar to its highest level since April 13, with the currency gaining around 1.5 percent at 1.3232 in the early US session on Tuesday.
Chances of an interest rate hike this year have surged to 72 percent from just 22 percent before stronger-than-expected jobs data on Friday, data from the overnight index swaps market showed.
Currently, the pair is trading around 1.3231 levels , it is set to decline further towards 1.3180 and later 1.3150 level in the short term.
The immediate support can be seen at 1.3213, break below this level will expose the pair to next support level at 1.3200.
Major resistance can be seen at 1.3309, break above this level will expose it towards 1.3360 levels.
