USD/CAD Forecast: Canadian dollar steady, U.S. jobless claims sparkles

Kenny Fisher MarketPulse

USD/CAD has ticked higher in the Thursday session,. Currently, the pair is trading at 1.3351, up 0.06% on the day. On the release front, there are no Canadian events for the remainder of the week. In the U.S., today’s key event was unemployment claims, which dropped to 199 thousand, beating expectations.

There was good news from the U.S. labor market, as unemployment claims dropped sharply, from 213 thousand to 199 thousand. This was the first time that the indicator dropped below the 200-thousand level since 1969. The four-week average, which is less volatile, dropped by 5.5 thousand to 215,000. The strong figures indicate that the employment picture remains bright, despite the ongoing U.S. government shutdown, which has resulted in the layoff of some 800,000 government workers.

With the global trade war showing no signs of easing, it is no surprise that growth forecasts for 2019 are heading south. On Tuesday, the International Monetary Fund lowered its global and eurozone growth forecasts. In October, the IMF projected global growth of 3.7% percent, but this has been revised to 3.5 percent. IMF head Christine Lagarde said that the world’s economy continues to expand, but “it is facing significantly higher risks”.

Aussie climbs as jobs data beats estimates

Euro area business growth close to stalling

USD/CAD Fundamentals

8:30 US Unemployment Claims. Estimate 219K
9:45 US Flash Manufacturing PMI. Estimate 53.5
9:45 US Flash Services PMI. Estimate 54.0
10:00 US CB Leading Index. Estimate -0.1%
10:30 US Natural Gas Storage. Estimate -145B
11:00 US Crude Oil Inventories. Estimate -0.2M

Open: 1.3343 High: 1.3369 Low: 1.3329 Close: 1.3351

USD/CAD Technical

S3	S2	S1	R1	R2	R3
1.3125	1.3200	1.3290	1.3383	1.3561	1.3552

USD/CAD ticked lower in the Asian session but recovered. The pair has posted small gains in European trade

1.3290 is providing weak support
1.3383 is the next resistance line
Current range: 1.3290 to 1.3383

Further levels in both directions:

Below: 1.3290, 1.3200, 1.3125 and 1.3049
Above: 1.3383, 1.3461 and 1.3552

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

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