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8 May 2015
USD/CAD regains 1.21
FXStreet (Mumbai) - The Canadian dollar rebounded and edged higher against its American counterpart in the European trading, with USD/CAD wavering around 1.21 handle, largely on the back of a recovery seen in oil prices while trades remain nervous ahead of employment data from Canada and the US.
CAD strengthens despite stronger USD
Currently, the USD/CAD trades lower by -0.17% at 1.2104, retreating from fresh session lows posted at 1.2088. The USD/CAD pair remains in red largely on the loonie strength as the oil prices returned to the positive territory, after a brief reversal seen yesterday which boosted the resource-linked CAD.
Moreover, markets remain cautious ahead of the key jobs data from Canada and the US which may provide further impetus to the USD/CAD pair.
Canadian economy is estimated to have shed at least 5,000 jobs in April, after the surprising addition of 28,700 new positions in March. The data is likely to drive the unemployment rate up to 6.9% from 6.8%.
On the contrary, US NFP is expected to show 230,000 jobs creation in April, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2122 levels and above which it could extend gains 1.2165 levels. To the downside immediate support might be located at 1.2088 levels, below that at 1.2050 levels.
CAD strengthens despite stronger USD
Currently, the USD/CAD trades lower by -0.17% at 1.2104, retreating from fresh session lows posted at 1.2088. The USD/CAD pair remains in red largely on the loonie strength as the oil prices returned to the positive territory, after a brief reversal seen yesterday which boosted the resource-linked CAD.
Moreover, markets remain cautious ahead of the key jobs data from Canada and the US which may provide further impetus to the USD/CAD pair.
Canadian economy is estimated to have shed at least 5,000 jobs in April, after the surprising addition of 28,700 new positions in March. The data is likely to drive the unemployment rate up to 6.9% from 6.8%.
On the contrary, US NFP is expected to show 230,000 jobs creation in April, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.2122 levels and above which it could extend gains 1.2165 levels. To the downside immediate support might be located at 1.2088 levels, below that at 1.2050 levels.