USD/CAD eyes again 1.31 after weak GDP and falling oil prices

By FXStreet FXStreet (Córdoba) – The loonie failed to hold to gains against the US dollar. Weak data from Canada and a decline in crude oil prices offset greenback weakness and pushed USD/CAD back toward daily highs.

USD/CAD rebounds at 1.30

At the same moment, when the Canadian GDP data disappoint, also wage numbers from the second quarter in the US were released and triggered a decline of greenback across the board. USD/CAD peaked at 1.3095, hitting a1-week high but then quickly dropped sharply and printed a fresh low daily low at 1.2940.

Afterwards it trimmed losses and rose back above 1.3000. During the last hour it broke above 1.3050 and gained momentum. Still holds a bullish tone, eyeing 1.3100. The area around 1.3100 capped the rally last week and also offered resistance today. A break higher could open the doors for further gains.

USD/CAD is about to post the first monthly close above 1.3000 since September 2004 and is consolidating above the long term resistance zone around 1.3000 where the highs of the global financial crisis lie.
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Source:: FX Street