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COZfx: USD/CAD weekly outlook

Discussion in 'Analisa Fundamental' started by harryer, Oct 14, 2013.

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  1. harryer

    harryer Member

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    COZforex: The US dollar was lower against the Canadian dollar on Friday as hopes for a short term deal to raise the US debt ceiling and avoid a sovereign debt default boosted investor confidence.

    USD/CAD ended Friday’s session at 1.0358, down 0.38% for the day, after rising to five-week highs of 1.0418 on Thursday. For the week, the pair gained 0.43%. COZforex senior currency strategist Ian • Quigley said, USD/CAD is predicted to find support at 1.0372, and a drop through could take it to the next support level of 1.0347. Meanwhile, the pair is predicted to find its first resistance at 1.0422, and a rise through could take it to the next resistance line of 1.0447.

    The greenback found support as House Republicans and the Obama administration began a second day of negotiations on a deal to reopen the government and raise the US debt ceiling in the short term. The U.S. risks running out of cash if the government borrowing limit is not raised by 17 October.

    Meanwhile, concerns over the economic impact of the political deadlock in Washington fuelled expectations that the Federal Reserve will further delay plans to start phasing out its USD85 billion a month asset purchase program.

    The University of Michigan’s consumer sentiment index declined to 75.2 from a final reading of 77.5 in September, and below expectations for a reading of 76.0.

    The Canadian dollar was boosted after data released on Friday showed that the country’s unemployment rate declined to an almost five year low in September. Statistics Canada said the economy added 11,900 jobs last month, more than expectations for jobs growth of 10,000. The unemployment rate ticked down to 6.9% from 7.1% in August.

    In the week ahead, investors will continued to closely monitor political developments in Washington. Trade volumes will be thin on Monday, with markets in the US and Canada closed for holidays.

    (COZ forex UK)
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