Topic: COZfx: USD/CAD trading close to 6-week lows
COZforex: The US dollar was trading close to 6 week lows against the Canadian dollar on Wednesday as investors looked ahead to Federal Reserve minutes later in the trading day.
USD/CAD edged up 0.06% to 1.0929, not far from Monday’s lows of 1.0911, the weakest since February 19. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0894, and a decline through could take it to the next support line of 1.0870. Meanwhile, the pair is predicted to find its first resistance at 1.0958, and a rise through could take it to the next resistance line of 1.0998.
In noteworthy event, the IMF upgraded its growth on Canada to 2.3% this year, but warned about the nation’s weaker than expected exports, high household debt loads and high house prices which would affect the economic outlook. IN addition, the IMF suggested the Bank of Canada Governor Stephen Poloz to keep the central bank’s benchmark interest rate low for some more time until it does not sees strong signs of economic recovery in the nation.
The dollar remained softer after last week’s US payrolls report came in slightly below expectations. Market watchers were looking to the Fed minutes for further indications on the future direction of US monetary policy.
Fed Chair Janet Yellen said recently that slack in labor markets showed accommodative policies will still be needed for some time.
The greenback weakened across the board on Tuesday, as sharp losses against the yen weighed. The yen was boosted after the Bank of Japan indicated that it was unlikely to implement further stimulus measures in the short term.
(COZ forex UK)