Forex Flash: Good US and Canada data may press the USD/CAD lower – TD Securities

FXstreet.com (Barcelona) - The CAD will be most excited with North American data, as Canadian January GDP and US GDP Q4 (third reading) will be released, as well as US initial jobless claims. “A soft Canadian GDP figure is well expected at this point and TD’s call for an on-consensus print of 0.1% m/m for the report does not imply a strong bias for a CAD reaction”, wrote TD Securities analysts Shaun Osborne and Greg Moore, adding that any development that is not bad news may be considered a mild positive for the CAD and could contribute slightly to the recent USD/CAD trend lower.

The USD/CAD has remained in consolidation mode just above key short-term support at the 40-day moving average at 1.0160. “With the loss of key trend support in the upper 1.01 area earlier this week, a test of 1.01 looks to be in the cards now in the coming weeks, before the longer term bull trend can resume”, they wrote, adding that a push below 1.0155 would find minor support near 1.0140, before the more solid 1.0100 area, while in the event of a bounce, 1.0185/90 is the nearest resistance spotted above.