FXstreet.com (Barcelona) - USD/CAD has risen around 60 pips in the last hour, from 1.2360 to 1.2422, after trading in a small range between 1.2355 and 1.2430 along today's session. Currently, the pair is trading around 1.2415/25 after rising 0.45% from the 1.2362 opening price.
Yesterday, the pair fell 1.83% from the opening price at 1.2591, reaching 1.2606 as highest and 1.2339 as lowest, to close the day at 1.2361.
According to Michael Malpede, Analyst at Easy Forex, The technical outlook for CAD is mixed with USD/CAD weakening from resistance above 1.2600: CAD traded higher supported by rising global equity markets and firmer commodity prices. Recent US economic data suggests that the US housing and manufacturing sector has stabilized and speculation that the US economy is bottoming helps to improve risk sentiment. Risk sentiment is also improving on news that the G- 20 plans to increase IMF funding from 250 Billion to 750 Billion. BOC Governor Carney says Canada has the strongest fiscal position of the G-7 and has considerable fiscal flexibility. Carney went on to say that the BOC will only take additional easing as needed to meet the inflation target. Carney's hawkish rate comments also supported the CAD. The BOC meet on April 21st .The BOC cut interest rates to a record low 0.5% in early March and said that it will consider quantitative ease. The commodity price rise is attributed to the improvement in risk appetite and rising equity markets. Crude oil prices traded sharply higher. No major Canadian economic data was released in today's trade. Friday's US unemployment report will be key to market risk sentiment and the direction of US equities. Short-term price moves for the CAD remain closely correlated to the direction of equities, commodities and risk sentiment.
Malpede concludes: The technical outlook for CAD is mixed with USD/CAD weakening from resistance above 1.2600. Look for near-term resistance at 1.2606 the April 2nd high with support at 1.2360 March 27th low.