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19 Mar 2014
USD/CAD in multi-year highs
FXStreet (Edinburgh) - The Canadian dollar is rapidly depreciating against its neighbour on Wednesday, pushing the USD/CAD to the area of 1.1240, levels last seen in July 2009.
USD/CAD catapulted by Fed
The greenback soared after the FOMC statement, where the Committee sees the first rate hike by the end of 2015, with target rates climbing to 2.25% by the end of 2016. According to the Fed’s new forecasts, members lowered the unemployment rate to 6.1%-6.3% for 2014 and 5.6%-5.9% for 2015. “The break out targets a rise in the low 1.15s over the next 1-2 months but we note that a clear move through 1.1225/35 (50% retracement of the 1.31/0.94 move down) would suggest a move towards 1.1650/1.17 in the slightly longer (3-6 months) run”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
The pair is now up 0.90% at 1.1235 with the next resistance at 1.1237 (50% 1.3066-0.9407) and then 1.1300 (psychological level). On the upside, a breakdown of 1.1122 (low Mar.19) would expose 1.1045 (daily cloud top).
USD/CAD catapulted by Fed
The greenback soared after the FOMC statement, where the Committee sees the first rate hike by the end of 2015, with target rates climbing to 2.25% by the end of 2016. According to the Fed’s new forecasts, members lowered the unemployment rate to 6.1%-6.3% for 2014 and 5.6%-5.9% for 2015. “The break out targets a rise in the low 1.15s over the next 1-2 months but we note that a clear move through 1.1225/35 (50% retracement of the 1.31/0.94 move down) would suggest a move towards 1.1650/1.17 in the slightly longer (3-6 months) run”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
The pair is now up 0.90% at 1.1235 with the next resistance at 1.1237 (50% 1.3066-0.9407) and then 1.1300 (psychological level). On the upside, a breakdown of 1.1122 (low Mar.19) would expose 1.1045 (daily cloud top).