USD/CAD dips to 1.0990

FXStreet (Edinburgh) - Bad day for the greenback so far, dragging the USD/CAD to test lows near 1.0990 after posting overnight tops around 1.1050.

USD/CAD focus on US docket, Canada

Spot posted weekly highs around the mid-1.1000s in early trade, however the upside lost momentum and deflated to the current 1.0990/95 area. Ahead in the day, US flash manufacturing PMI gauged by Markit for the month of September (58.0 exp.) and Canadian retail sales (0.5% MoM in July exp.) will grab all the attention. Stephen Gallo, European Head FX Strategy at BMO, observed, “The pair is still vulnerable to any type of negative influence on the USD, especially above 1.0920/50. Once again, key rate differentials remain USDCAD supportive but they are not yet justifying new gains”.

USD/CAD key levels

At the moment the pair is losing 0.42% at 1.0997 with the next hurdle at 1.1050 (high Sep.23) ahead of 1.1072 (high Sep.16) and then 1.1100 (high Sep.15). On the flip side, the immediate support lines up at 1.0955 (Kijun Sen) ahead of 1.0926 (low Sep.22) and finally 1.0900 (psychological level).