Currency – USD/CAD Slides Near 2-week Lows, Seen to Recover on 1.24 Level
The USD/CAD forex pair continued to dwell on some selling pressure for the third straight trading day and stretched its retreat further under the key 1.2500 mark.
The currency tandem continued its post-NFP retracement from 30-day max and has now dipped to near 14-day lows, around the 1.2435 area.
Continued greenback selling bias, sparked by a perceived dovish FOMC meeting minutes yesterday, has been among the major elements pulling down the forex pair lower.
Even a slight pullback in the prices of crude oil, which seems to affect demand for the commodity-depended currency – the Canadian currency did little to provide any help, with the current weaker sentiment surrounding the USD acting as an exclusive mover of the forex pair’s decline to its lowest mark since last week of September.
Our economic docket for Thursday highlights the release of the Canadian New Housing Price Index (NHPI), along with figures from the PPI as well as weekly unemployment claims from the US.
Meanwhile, immediate support is expected near the 1.2425 handle, below which the currency pair may push the slide towards the 1.2400 spot before falling to its next support near the mid-1.2300s.