- USD/CAD extends rebound from 1.2855 and breaks yesterday’s high.
- Bank of Canada released the Financial System Review. Jobs data due tomorrow.
The USD/CAD pair, after trading in a 35-pip range, broke to the upside and reached at 1.2988 a fresh daily high. It was holding on top 1.2960, posting modest daily gains. A stronger US Dollar against commodity and emerging market currencies supported the upside.
The Bank of Canada released the Financial System Review. According to a statement by the BoC, “high household indebtedness and housing market imbalances remain the most important vulnerabilities” and added that “while these vulnerabilities remain elevated, policy measures continue to improve the resilience of the financial system.” The report mentioned that the economy is operating close to its potential. In a few minutes, BoC Governor Poloz will deliver a speech.
Regarding data, the key economic numbers in Canada will be published on Friday: the employment report. An increase of 17,5K in net employment during May is expected.
“The Canadian Dollar is looking for a new direction. On one hand, the recent Bank of Canada statement was upbeat, boosting the C$. On the other hand, concerns about trade relations with the US weigh. Fresh, top-tier economic data can make the difference, especially as it is expected to be normal”, said Yohay Elam, Analyst at FXStreet.
Technical levels
To the upside, a key level to watch is the 1.3000 zone: a consolidation on top could open the doors to more gains. Resistance levels on top might lie at 1.3035 and 1.3050. On the flip side, 1.2960 is the immediate support, followed by 1.2930/35 (June 7 low) and 1.2895.
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