COZforex: The US dollar was steady close to 1 week highs against the Canadian dollar on Tuesday, as investors turned their attention to Wednesday’s minutes of the Federal Reserve’s June meeting.

USD/CAD touched highs of 1.0695, the most since June 30 and was last at 1.0677, almost unchanged for the day. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0645, and a drop through could take it to the next support line of 1.0606. Meanwhile, the pair is predicted to find its first resistance at 1.0704, and a rise through could take it to the next resistance line of 1.0724.

Demand for the greenback continued to be underpinned after a strong US jobs report late last week sparked speculation that the Federal Reserve could bring forward its timetable for raising interest rates.

The US economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years.

But the dollar’s gains against the other major currencies paused on Tuesday due to the belief that the Fed will stick to its dovish stance on monetary policy amid concerns over ongoing slow growth in inflation and wages.

Markets were looking to Wednesday’s minutes for further indications on the central bank’s monetary policy stance.

Trade was expected to remain subdued with no major economic reports in the US or Canada scheduled for release on Tuesday.


(COZ forex UK)