USD/CAD under bullish pressure

USD/CAD is pushing higher above the 1.0300 mark on Wednesday as oil prices are edging lower ahead of the Fed’s Chairman Ben Bernanke testimony in Congress at 18:00 GMT and FOMC meeting minutes at 22:00 GMT. Bernanke's remarks could have a big impact on expectations regarding the Fed's plans to slow the pace of its QE program. Canada will release retail sales data at 12:30 GMT (slower growth is forecasted).

We recommend buying the pair on a break above 1.0340 (2012 highs). Rise above this level would open the way for growth to 1.0400 and 1.0440. Buy orders are clustered at 1.0260, 1.0200 and 1.0150.

HSBC (Canada): The market seems to be preparing for some discussion about the end of QE, which should weigh on the Canadian dollar. Inflation numbers have suggested that there is no reason for the Bank of Canada to consider hiking rates.

Chart. Daily USD/CAD

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