FXStreet – The Greenback is holding its gains against the canadian Dollar. Last traded the currency pair USD/CAD on 1,3501 and to 0.01 percent in the Plus.
USD/CAD focus on US ISM
The currency pair posted since Friday profits and recovered from the deep Pullback in the previous week on a new Multi-week Low below the level of 1,3400 (25. May).
The upward pulse is accompanied by a broad-based weakness of the canadian dollar. Blame, among other things, the price of Oil. The US variety of West Texas Intermediate declined since the OPEC Meeting by a good 8 per cent, and traded recently at around 48.00 USD.
The Greenback put on it, however, due to growing expectations of interest rate hikes a ride. The CME Group FedWatch Tool indicates currently that the investors assess the likelihood of an interest rate step to over 91 percent.
In addition, the US Dollar of a outstanding employment growth in the US benefited from the private sector, and the yields in the United States have jumped and the Spread between American and canadian government bonds expanded.
The focus of the investors is the ISM Index for the Manufacturing sector. After that, the U.S. Department of energy will release the official crude oil inventory data.
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The next hurdles are 1,3523 (to the power of 31. May), 1,3567 (20-day line) and 1,3575 (38,2% Fibo). On the bottom of the Depth defined by the 31. May 1,3437, as well as the Low of 29. May 1,3424 and the 100-day line at 1,3360 the next supports.
** FXStreet News Editorial, FXStreet**