COZforex: The US dollar was little changed against the Canadian dollar in early trade on Tuesday, as investors remained cautious amid concerns over the outlook for the US economic recovery.
USD/CAD hit 1.0272 amid early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0271, and a drop through could take it to the next support line of 1.0254. Meanwhile, the pair is predicted to find its first resistance at 1.0306, and a rise through could take it to the next resistance line of 1.0324.
Concerns over the outlook for the US recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track. Speaking Monday, Dudley said the pace of the US economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to US data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data released on Tuesday showed that domestic retail sales missed expectations in July. Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
(COZ forex UK)
USD/CAD hit 1.0272 amid early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0271, and a drop through could take it to the next support line of 1.0254. Meanwhile, the pair is predicted to find its first resistance at 1.0306, and a rise through could take it to the next resistance line of 1.0324.
Concerns over the outlook for the US recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track. Speaking Monday, Dudley said the pace of the US economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to US data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data released on Tuesday showed that domestic retail sales missed expectations in July. Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
(COZ forex UK)