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18 Mar 2013
Forex: USD/CAD regressing to 1.0200 line
FXstreet.com (Barcelona) - The risk-off sentiment in reaction to Cyprus news allowed the USD/CAD to jump above the 1.0200 line but to find resistance at 1.0250 area. During the European session, the pair became weaker and has been retracing gains since then, having reached 1.0205.
Both Canada and US data for today are out. The Canadian portfolio investment in foreign securities fell from $5.47B to $-1.18B in January, while the foreign portfolio investment in Canadian securities rose from $-1.92B to $13.34B, beating consensus of $7.85B. The March housing market index by NAHB eased from 46 to 44, contradicting the consensus for a rise to 47.
“The market struggled to push higher through the 1.0350 earlier this month, opening the door for a modest consolidation/correction in funds after the strong rally from the par zone”, wrote TD Securities analyst Shaun Osborne and Greg Moore, adding that while there is not clarity on Cyprus, modest USD/CAD dips are a buy to the 1.02 area in the near-term.
Both Canada and US data for today are out. The Canadian portfolio investment in foreign securities fell from $5.47B to $-1.18B in January, while the foreign portfolio investment in Canadian securities rose from $-1.92B to $13.34B, beating consensus of $7.85B. The March housing market index by NAHB eased from 46 to 44, contradicting the consensus for a rise to 47.
“The market struggled to push higher through the 1.0350 earlier this month, opening the door for a modest consolidation/correction in funds after the strong rally from the par zone”, wrote TD Securities analyst Shaun Osborne and Greg Moore, adding that while there is not clarity on Cyprus, modest USD/CAD dips are a buy to the 1.02 area in the near-term.