USD/CAD: bulls in trouble

FXStreet – The currency pair USD/CAD has had in the European business to a recovery set, it is more than 1,3650 lifted. However, the Greenback after disappointing failed economic data from the United States once again on the descent.

The selling interest around the US dollar accelerated after the housing market data in the United States had missed forecasts. Thus, the U.S. must cope with economic new negative messages. In fact, the number of building permits and housing starts fell in April, dramatically stronger than expected. The number of building permits fell in April by 2.5 percent to an annualised rate 1.229 million, according to the U.S. Department of Commerce on Tuesday. Housing starts fell month-on-month by 2.6 percent on the year to € 1,172 million units. In addition, the Figures for the previous month were revised down.

In response to the again disappointing the failed US economic data, rate hike expectations for a faster tightening cycle by the Federal Reserve went further back in time, what weighed on the Greenback. In fact, the U.S. Dollar Index slipped to the lowest level since the U.S. presidential election.

However, recent positive data on the US industry were published in production and capacity utilisation, which should have saved the cops for the time being. The currency quoted is still important to 1.36 mark.

The canadian Dollar, meanwhile, is supported by the speculation on an extension of the OPEC production cut in June. In addition to Saudi Arabia, and Russia are also Iran announces its readiness for the extension of the agreement.

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Technical Levels

The next supports lie at 1.3600, 1,3565/60 and 1,3500 (psychological mark). Technical Resistances, however, are found at 1,3650, 1,3665/60 and 1,3750.

** FXStreet News Editorial, FXStreet**

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