USD/CAD: 1.3120 is key support on downside – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman, noting the Nonfarm Payrolls as just one report, explaining that the higher oil prices and a narrowing trade deficit have helped the Loonie.

Key Quotes:

“We suspect that the outcome of this month’s FOMC meeting does not rest on one high-frequency report.”

“The underlying trends in the US economy, however, have been persistent. Growth on a year-over-year basis has been largely stable.”

“It may not be an impressive pace, but it has been sufficient to gradually close the output gap and absorb slack in the labor market.”

“A break of USD/CAD 1.3120 could spark another big figure decline toward CAD1.30.”
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Source:: FX Street