July 18, 2024 11:49 GMT
USDCAD Hovers Close To 1.37 Handle, EURCAD Elevated Ahead Of ECB
CANADA
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- USDCAD holds narrow ranges overnight, and at 1.3680 is close to the week’s highs having twice breached 1.37.
- Tuesday’s 1.3708 sets initial resistance after which lies 1.3755 (Jul 2 high) although a bear threat is still deemed present despite recent gains with support at 1.3590 (May 16 low).
- Today’s cut sees relatively light option expiry although more notable ones are biased higher with 1.3730 ($513m) plus 1.3750 ($250m).
- US weekly jobless claims should be the main near-term driver for the cross, with employment insurance for May the pick of limited Canadian data.
- However, and as noted earlier with today’s ECB decision in focus, with, EURCAD remains at interesting levels with USD weakness adding to BoC policy considerations to help drag the Canadian dollar lower on crosses.
- At 1.4953 it’s close to yesterday’s 1.4975 in a continuation of the step higher after Tuesday’s CAD CPI. The cross has pierced downtrend resistance (drawn from the 2023 highs), further single currency strength may threaten key targets of 1.5045 and 1.5113 for the cross.
EURCAD has pierced downtrend resistanceSource: Bloomberg
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