S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
1.2969 |
1.3049 |
1.3125 |
1.3200 |
1.3290 |
1.3383 |
The Canadian dollar continues to improve this week. Currently, the pair is trading at 1.3193, down 0.14% on the day. There are no data releases out of the U.S., but investors will be keeping a close eye on the Federal Reserve minutes from the January meeting. There are no Canadian indicators on the schedule. Thursday will be much busier. In the U.S., key events include durable goods and unemployment claims, and Canada will release ADP nonfarm payrolls.
If recent comments out of the Fed are any indication, the minutes from the January policy meeting are likely to be dovish. The Fed has sent signals that it will ease up on rate policy this year, after aggressively raising rates four times in 2018. The January rate statement had a decidedly dovish tone, as policymakers discarded previous pledges of “further gradual increases” in interest rates, and said it would be “patient” before any further hikes. The current Fed projection calls for two rate hikes this year, but that is subject to change, based on the strength of the U.S. economy. The markets have priced in a hold on rates for the near-term, with little expectation of a rate hike in the first half of the year.
The markets remain optimistic over the U.S-China trade spat, and stonger risk appetite is bullish for the Canadian dollar, a minor currency. Chinese and U.S. officials are now conducting a fourth round of talks, as the sides look to ease trade tensions after months of tit-for tat tariffs which have hurt global growth and rocked the stock markets. Treasury Secretary Steven Mnuchin joined the talks last week and called the negotiations “productive”. The U.S. has threatened to impose stiff new tariffs on March 1, but on Tuesday, President Trump said that the talks were going well and that March 1 was not a “magical day”. If the March 1 deadline is removed, traders can expect the Canadian dollar to respond with strong gains.
A golden day for sterling
Yen weakens on delayed reaction to Kuroda
Dollar falls for a fifth straight session
USD/CAD Fundamentals
-
14:00 US FOMC Meeting Minutes
-
8:30 Canadian ADP Nonfarm Employment Change
-
8:30 Canadian Wholesale Sales
-
8:30 US Core Durable Goods Orders. Estimate 0.2%
-
8:30 US Durable Goods Orders. Estimate 0.8%
-
8:30 US Philly Fed Manufacturing Index. Estimate 15.6
-
8:30 US Unemployment Claims. Estimate 220K
Open: 1.3212 High: 1.3217 Low: 1.3177 Close: 1.3193
USD/CAD Technical
USD/CAD ticked lower in the Asian session and is showing limited movement in European trade
-
1.3125 is providing support
-
1.3200 has switched to a resistance role after losses by USD/CAD on Wednesday
-
Current range: 1.3125 to 1.3200
Further levels in both directions:
-
Below: 1.3125, 1.3049 and 1.2969
-
Above: 1.3200, 1.3290, 1.3383 and 1.3445
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.