Forex Marketz Daily Forex News – Fully Markets Update
USD/CAD offered closer to 1.30 as gold recovers losses
FXStreet (Mumbai) – The USD/CAD pair was offered at the high of 1.2997, tracking the recovery in gold prices from the low of USD 1072/Oz to trade above USD 1100/Oz.
Currencies tracking gold
The major currency pairs are largely moving in tandem with gold prices. The Canadian dollar also recovered losses and pushed the USD/CAD pair to a session low of 1.2952, but failed to sustain gains on account of the bearish undertone triggered by the last week’s rate cut announced by the Bank of Canada (BOC). The diverging monetary policy path of the Fed and BOC is capping losses in the USD/CAD pair.
With no major US data due for release, the pair may take cues from the Canadian wholesale sales figure due for release. Furthermore, the movement in WTI Crude, which currently trades flat, may also influence the pair.
USD/CAD Technical Levels
The immediate resistance is located at 1.3, above which the spot could target 1.3063 (March 2009 high). On the other hand, a break below the immediate support at 1.2952 (daily low) could see the spot drop to 1.29 handle.
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Source: FXStreet
