USD / CAD retreats after failing to sustain above 1.2400

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  • The loonie remains sideways against the dollar, in a small range.
  • Intense week for the USD / CAD, with the Fed and employment reports in the US and Canada.

The USD / CAD remains with lateral movements without being able to exceed 1.2400. The pair momentarily traded above 1.2400 during the European session but then fell back to 1.2368, marking a new low for the day.. Before the US session it is around 1.2385.

For a week and a half the USD / CAD has been moving without a clear direction, near the October floor which is at 1.2285. Should it affirm above 1.2400, the dollar would be positioned for a bullish extension. In the opposite direction, if it goes below 1.2300, the outlook will favor more weakness ahead.

At the start of the week, the climate of some optimism in the equity markets is not moving clearly to the currency market, as the dollar presents mixed results. In turn, the loonie is helped by a rise in oil prices. The barrel of WTI rises 0.65% and is over $ 84.00.

On the data side, Monday will feature manufacturing PMI data in the US and Canada. The key event this week is estimated to be the decision of the Federal Reserve on Wednesday. Friday will be an intense day for the pair as well as employment reports from both the US and Canada will be released.

The busy economic calendar can guarantee some volatility, with directions uncertain through Friday and chances of sharp ups and downs.

Technical levels

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