Forex: USD/CAD back above 1.0200

FXstreet.com (Barcelona) - This year’s upside peaked at 1.0342 and eventually fell back below the 1.0300 handle. This week, the market has been questioning the 1.0200 mark and after yesterday’s move to 1.0189 low, it closed at 1.0216. Today, another selling flow saw the USD/CAD going to 1.0191, but the European opening pulled the cross back above the psychological level.

Investors will have US data to think about: “For durable goods we expect a 4.0% increase and 1.0% rise ex-transport, but a 1.0% fall in core. Then US S&P/CS Index we see a below consensus 0.70% m/m increase in January”, wrote TD Securities analyst Annette Beacher, pointing also March Consumer confidence at 71.0 and New Home sales at 410K in February.

ECB’s Couere said he doesn’t agree with Dijsselbloem and the Cyprus bailout is not a new model for Europe, adding that there’s no reason to think French banks have the same problem as Cyprus. Also, he indicated that the troubles in Cyprus only show the need for ECB to be independent supervisor of banks in Europe.

UBS analysts are bullish: “While support at 1.0181 holds, there is scope for resumption of upside”, wrote analyst Gareth Berry, pointing to resistance at 1.0285 ahead of 1.0342.