- USD / CAD extends the bounce from multi-year lows above the 20-day SMA.
- The US dollar strengthens during the US session amid risk aversion.
The USD / CAD It resumed higher during the US session on Friday and rose to 1.2707, reaching the highest level in a week. The pair is now up over 200 pips from Thursday’s low in an impressive reversal.
The pair is back above the 20-day moving average. A consolidation well above 1.2700 could point to higher gains. The next strong resistance is seen at 1.2760.
The USD / CAD rally was triggered by risk aversion and rising US yields. On Wall Street, the Dow Jones is down just 0.52% on Friday, but the index is on track for the worst week in a month, far from the all-time high, suggesting that the rally may already have been exhausted anytime soon. finished.
DXY is also at daily highs at 90.85 (highest since Feb 18). Yield growth in the United States moderated as the 10-year yield stood at 1.49%.
Economic data released on Friday had little impact on markets. In Canada, producer prices rose above expectations. In the US, personal income and spending data showed large gains, in line with expectations. The data was offset during the week by the evolution of the fixed income and equity markets.
Technical levels
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