GBPUSD – 1.3200 in View?

GBPUSD – 1.3200 in View?

Chart Of The Day

Cable saw a small selloff today in the wake of cooler than expected CPI readings, but the pair held key 1.3000 support and appears well on its way towards testing multi-month highs at the 1.3200 level.

Tonight is an off night for the eco calendar with nothing on the docket in either UK or North America, but on Thursday the pair will see the release of UK Retail Sales which is seen as a key barometer of UK consumer health. Retail Sales have been a major drag on the UK economy but the market anticipates a massive rebound. If the data meets forecasts – it could be the catalyst to spur a further rally to take the pair towards the 1.3200 target as the week comes to a close

USD/CAD Will 1.3200 – Stop the Rally?

USD/CAD Will 1.3200 – Stop the Rally?

Chart Of The Day

It’s be a remarkable rally for USDCAD as the pair is up almost 700 points in the month of May despite the fact that Crude is closing in $50/bbl level. The run in the pair is partly due short covering and partly to a more bullish outlook on the US dollar as the FOMC meeting minutes yesterday suggested that a hike may be coming in June. Such a move would widen the rate differentials between the two currencies and could push the pair towards the 1.3500 level.

But before that can happen – USDCAD needs to overcome serious resistance as the 1.3200 mark. Tomorrow’s Retail Sales could do the trick if they miss forecasts. Markets are already anticipating a decline of -0.6% from 0.4% the month prior but a bigger miss of more than 1% could push the pair well through the 1.3200 figure and open the way to a run towards 1.3500.

USDCAD – is 1.3200 Support?

USDCAD – is 1.3200 Support?

Chart Of The Day

Life for the loonie has certainly been interesting The pair has essentially been on a massive seesaw ride following the price of oil both down and up. With crude having bounced off multi-year lows USD/CAD has tumbled more than 12 big figures off the highs set earlier this year.

Now with crude more or less stabilized at $35/bbl the market may start to look lore closely at the fundamentals of Canadian economy. Tomorrow’s BOC meeting should provide plenty of fodder for traders with the central bank likely to present an upbeat picture claiming that the worst is behind for the Canadian economy.

That may provide some momentum for the loonie, but with pair already having corrected so far so fast, the move may not extend much as the 1.3200 level looks to be serious support for now