The U.S. dollar rose to three-week highs against its Canadian counterpart on Tuesday, after data showed that Canada’s economy contracted in April and as investors remained cautious amid mounting fears over a Greek default.
Data on Tuesday showed that Canada gross domestic product fell -0.1% in May, compared to expectations for a 0.1% rise, after a 0.2% decline the previous month.
Meanwhile in the U.S, data showed that consumer confidence rose 101.4 in May, compared to expectations for 97.1 rise, after a 95.6 previous reading. However a revision of the previous month was made to 94.6 but the dollar remained supported as Greece’s bailout program was due to expire on Tuesday and without a rescue package in place Athens would almost certainly fall into arrears on a loan repayment due to the International Monetary Fund.
Intra-day bias remains bullish after price successfully breached 1.24215 resistance with 21 and 55 EMA crossed upward. Also SSRC and MACD oscillator shows bullish momentum is still intact, so i’m expecting more rise to 1.25617 (June 1 2015 high).
Tomorrow investors will be taking a close look at the U.S ADP Non-Farm Employment Change and ISM Manufacturing PMI.