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COZfx: USD/CAD slips to 8 day lows


kiriss5678

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COZforex: The US dollar slipped to the lowest level in 8 days against the Canadian dollar in early US trade on Wednesday amid growing uncertainty over the timing of a reduction in Federal Reserve stimulus.

In technical analysis, coz forex senior derivatives trader Daniel • Moloney said, USD/CAD is predicted to find support at 1.0588, and a drop through could take it to the next support line of 1.0571. Meanwhile, the pair is predicted to find its first resistance at 1.0635, and a rise through could take it to the next resistance line of 1.0665.

The dollar slipped amid fresh doubts over whether the Fed will taper its USD85 billion-a-month asset purchase program at its December 17-18 policy meeting, despite last week’s stronger-than-forecast US nonfarm payrolls report for November.

The dollar shrugged off news that US Congressional leaders reached an agreement on a two year budget deal on Tuesday. Congress will still need to reach a deal to raise the US debt ceiling in February 2014 in order to avert a default.

The Canadian dollar’s gains were capped by concerns that the subdued domestic inflation outlook may prompt the Bank of Canada to keep interest rates on hold for longer.

(COZ forex UK)

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