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COZfx: USD/CAD near 3-week highs before Yellen


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COZforex: The US dollar was close to three week highs against the Canadian dollar on Tuesday as investors turned their attention to congressional testimony by Federal Reserve Chair Janet Yellen later in the session.

USD/CAD was up 0.13% to 1.0726, not far from Monday’s highs of 1.0746. COZforex senior currency strategist Ian • Quigley said, USD/CAD is predicted to find support at 1.0705, and a decline through could take it to the next support line of 1.0685. Meanwhile, the pair is predicted to find its first resistance at 1.0747, and a rise through could take it to the next resistance line of 1.0769.

Traders were looking to Ms. Yellen’s remarks later Monday for fresh indications on the future direction of monetary policy after last week’s minutes of the Fed’s June meeting revealed little new information on when rates could start to increase.

US data release on Tuesday painted a mixed picture of the economic recovery.

The Commerce Department reported that US retail sales rose just 0.2% in June, below forecasts for a 0.6% increase. Retail sales for May were revised up to 0.5% from a previously reported 0.3%.

A separate report showed that manufacturing activity in New York state rise to a 4 year high this month. The Empire state manufacturing index rise to 25.6 from 19.3 in June. Analysts had expected the index to drop to 17.0.

The Canadian dollar remained under pressure after unexpectedly weak domestic employment data last week indicated that the Bank of Canada would keep rates on hold at 1% at its upcoming policy meeting on Wednesday.

(COZ forex UK)

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