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11 May 2015
USD/CAD sees downside potential over the medium-term – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team, reviews the Canadian jobs data release, and further notes that the Canadian economic outlook suggests CAD might remain supportive over the medium term, hence remain bearish on USD/CAD, targeting 1.1950.
Key Quotes
“Canada's economy shed a higher-than-expected 19.7k jobs in April. The unemployment rate remained unchanged at 6.8% in April.”
“The employment number is stronger than the headline would suggest with solid gains in higher quality full-time employment of 46.9k jobs (previously -28.2k), while part-time employment lost 66.5k jobs (previously 56.8k). The participation rate was a tick lower at 65.8% from 65.9% in March. Annual hourly wage growth in April increased by 2.4%.”
“Immediately after the U.S. and Canadian jobs data was released the loonie rallied to a session high of 1.2046 before retreating to a session low of 1.2145.”
“The CAD has been one of the best performing currencies since beginning of April. The optimism about economic growth recently expressed by the Bank of Canada was also confirmed by an increased Ivey PMI last week.”
“In our opinion the CAD has the upside potential that will emerge in the medium to longer term and gradually increasing oil prices should help the loonie. We maintain our sell order on the USD/CAD at 1.2170.”
“Resistance: 1.2145 (high May 8), 1.2164 (high May 7), 1.2180 (high May 4)”
“Support: 1.2046 (low May 8), 1.2033 (low May 7), 1.1940 (low May 6)”
“USD/CAD: sell at 1.2170, if filled - target 1.1950, stop-loss 1.2280, risk factor ***”
Key Quotes
“Canada's economy shed a higher-than-expected 19.7k jobs in April. The unemployment rate remained unchanged at 6.8% in April.”
“The employment number is stronger than the headline would suggest with solid gains in higher quality full-time employment of 46.9k jobs (previously -28.2k), while part-time employment lost 66.5k jobs (previously 56.8k). The participation rate was a tick lower at 65.8% from 65.9% in March. Annual hourly wage growth in April increased by 2.4%.”
“Immediately after the U.S. and Canadian jobs data was released the loonie rallied to a session high of 1.2046 before retreating to a session low of 1.2145.”
“The CAD has been one of the best performing currencies since beginning of April. The optimism about economic growth recently expressed by the Bank of Canada was also confirmed by an increased Ivey PMI last week.”
“In our opinion the CAD has the upside potential that will emerge in the medium to longer term and gradually increasing oil prices should help the loonie. We maintain our sell order on the USD/CAD at 1.2170.”
“Resistance: 1.2145 (high May 8), 1.2164 (high May 7), 1.2180 (high May 4)”
“Support: 1.2046 (low May 8), 1.2033 (low May 7), 1.1940 (low May 6)”
“USD/CAD: sell at 1.2170, if filled - target 1.1950, stop-loss 1.2280, risk factor ***”