The Canadian economy started Q2 with no change. This was slightly better than a drop of 0.1% that was expected, but fails to cheer the loonie, as no growth isn’t such good news. USD/CAD, which was falling prior to the release, is now back up.
Canada’s largest trading partner, the United States, isn’t doing too well either. Once again, the weekly jobless claims disappointed and remained at a high level of 428K. This is a very minor drop of 1000 claims. A drop to 419K was expected. This is also weighing on the Canadian dollar.
USD/CAD is struggling around the support line of 0.9667. Below, 0.96 and 0.9525 provide support .Above, 0.9750 and 0.9816 are resistance. For more levels, see the Canadian dollar forecast.
The Canadian dollar enjoyed a nice rise after the Greek vote. A risk appetite sentiment sent the US dollar lower across the board. The Canadian dollar enjoyed this, and also the rise in oil prices, that managed to recover after the blow they got from IEA last week.