US dollar fought back last week in spite of weak jobs report. EUR/USD breached 2-year high at 1.2070 before dipping below 1.19. While USD/CAD sink below 1.24 after strong Canada GDP and weak US jobs data.
3 monetary policy meetings are scheduled to be held next week which will shape for the short term direction of respective currency. If BoC continues delivering hawkish policy statements, USD/CAD will be pushed even lower to 1.2250-1.2210 support area. We expect selling pressure on EURCAD to the target level of 1.4630 and 1.4500 in long term.
After strong rebound from support level at 1.2220, GBP/CHF is expected to continue its rally to 1.2560 and 1.2660 in long run. Watch out for RBA minutes on Tuesday and look for selling opportunity on AUD if they started showing more concern about their currency’s strength.
This week key economic events:
