USD / CAD rebounds after setting daily lows at 1.2065

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  • The USD / CAD trades without a clear direction on Monday, on a limited travel schedule.
  • The dollar in neutral ground, after Friday’s employment report and Yellen’s statements.

The USD / CAD fell to 1.2065, hitting the lowest level since Thursday and prolonging the retracement from Friday’s one-week high at 1.2132. But then it quickly bounced closer to 1.2100. It is trading around 1.2085, slightly up and moving in no clear direction.

On Friday, official US employment figures for May led to a decline in the dollar, which has slowed for now. Over the weekend, Treasury Secretary and former Federal Reserve chief Janet Yellen said that higher interest rates shouldn’t be a problem. These statements boosted Treasury yields only modestly, which are up very modestly on Monday. The June 15-16 Fed meeting will be key.

The loonie is losing ground to the AUD and NZD on Monday. These two currencies are rising against the dollar, while the loonie is on neutral ground.

From a technical point of view, USD / CAD continues to move sideways, still near the key support of 1.2000 and close to lows in years. A close above 1.2150 would point to an upward correction, while below 1.2000 there could be a downward acceleration.

Technical levels

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