USD/CAD: Broad based US Dollar recovery hits Loonie as well
- Broad-based US Dollar strength stems from economic and inflation outlook.
- All focus may be now on the Fed's chairman Congressional testimony on Tuesday.
The USD/CAD is trading around 1.2700 in New York morning session, surging 0.3% on optimistic comments by Fed’s Bullard.
St. Louis Fed president James Bullard said he is overly optimistic about the outlook for the US growth on tax reform that could lead to investment bump. As a monetary policy dove, he expressed some concerns about going too high too soon with rates unless data support it.
The US Dollar was trading lower earlier on Monday but recovered on optimistic Fed judgement of the US economy. The key policy speech is scheduled for Tuesday with new Federal Reserve chairman Jerome Powell delivering his first Congressional testimony. Powell's testimony is scheduled for 13:30 GMT, but the text of his speech will be made public 90 minutes before the speech.
Technically, for USD/CAD, the area of 1.2627 is now a vital support now and in that scenario, USDCAD may rally further towards 1.2755-1.2912 zone in the coming days.