USDCAD: Guided by the technical - BBH

The US dollar rose about 1.3% against the Canadian dollar last week and this was sufficient to put it higher on the year, explains Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“The US dollar spiked to CAD1.2685 ahead of the weekend in response to poor Canadian jobs data, which appeared to have been skewed by the hike in the minimum wage.  However, the US dollar quickly surrendered the gains and a new session low was recorded near CAD1.2560.  The greenback spent the rest of the session straddling the CAD1.26 level.  At its highs, the US dollar met the 61.8% retracement objective (~CAD1.2665).   The technical indicators are supportive for the US dollar.”