USD/CAD ripe for 1.0900

FXStreet (Edinburgh) - The upbeat sentiment around the greenback is extending across the board on Wednesday, lifting the USD/CAD to levels just shy of 1.0900 the figure.

USD/CAD boosted by US GDP

The pair saw its recent upside reinforced following the very auspicious results from the US GDP during the second quarter, showing that the economy expanded beyond estimates at an annual pace of 4.0% (vs. 3.0% expected). Continuing with data releases, the US PCE also rose 2.3% QoQ in Q2, leaving behind forecasts for a 2.0% gain. “The Fed are likely to acknowledge this stronger tone to some extent in tonight’s FOMC statement, but a more significant shift in language is probable at the September FOMC. We continue to expect the Fed’s tapering to conclude in October, and look for the Fed to start hiking rates in April”, commented James Knightley, Analyst at ING Bank.

USD/CAD levels to watch

As of writing the pair is up 0.34% at 1.0890 and a breakout of 1.0898 (high Jun.18) would expose 1.0922 (high Jun.10). On the downside, the immediate support lines up at 1.0801 (low Jul.28) ahead of 1.0768 (Daily Tenkan) and finally 1.0763 (10-d MA).