A positive US Dollar which is opening today’s session against his Canadian cpty is continuing the green Friday’s movement and is extending his bullish momentum after the hawkish comments from the Fed’s chair Yellen.
At the time of writing the USD/CAD cross is trading up 0,50% at 1.3093 after bouncing on a good support near 5-DMA. A strongly bid cross on the back of a decent demand of US Dollars and a weakness of both the Oil benchmarks which suffer an increasing count of the US rigs.
Besides this, the US bull continue benefitting from the hawkish comments from Janet Yellen making it over performing even against his major peers.
Canadian data expected for today’s session won’t have any effect on the CAD with the Q1 current account expected up from $15.38bn to $16.80bn and industrial product price growing to 0,4% MoM from a previous -0,6% and which would support the manufacturing sales after a declining period.
During this week however there will be released some important data for the North American currencies, with Canadian GDP and retail sales one side, and US NFP and PCE index the other side. Particularly important event will be the OPEC meeting on the 2nd of June, which would have a big effect on the Loonie price action.
Looking exclusively at the chart i can see a first close resistance at 1,3100 followed by the 1,3155 one (19 May high). To the downside the first significant support is seen at 1.3032.
To notice that the US Dollar is now up almost 38,2% from the 3 May correction and this upside movement could continue with this power until the 20-day moving average won’t be broken, running out of his support function. With this in mind the expectations for the next months see the CAD target slightly over the 1,3300 level.