USD/CAD unstoppable hits 1-year lows below 1.2670
The loonie is among the top performers on Friday and also of the week. Against the US dollar is trading at the highest since May 2016.
USD/CAD resumes slide
The pair tumbled on Wednesday after the rate hike from the Bank of Canada. Today, after a 1-day consolidation, USD/CAD resumed the downside. It accelerated the move after falling below Thursday’s low at 1.2715. It is trading at 1.2650 at the lowest in more than a year.
Since yesterday the pair has fallen almost 300 pips. It started to slide after the first rate hike in years from the BoC. According to analysts, it was not a “dovish hike” and that boosted the loonie.
Today is the weak US dollar that is sending USD/CAD to the downside. The greenback was affected by US data, that showed lower-than-expected readings in June retail sales and inflation.
US: Consumer Price Index was unchanged in June on a seasonally adjusted basis
US: Retail and food services sales for June 2017 were $473.5 billion, a decrease of 0.2%
Levels to watch
Some short-term technical indicators are showing oversold readings but the current slide still appears strong. Price continues to slide with no signal of stabilization emerging so far. Potential support levels might lie at 1.2650 (daily low), 1.2590 (Apr 20, 2016 low) and 1.2510 (2016 low).
On the upside, resistance now might lie at 1.2675/80 (Jul 12 low), 1.2715/20 (Jul 13 low) and 1.2750 (daily high).
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