The Canadian dollar has ticked higher in the Monday session. Early in North American trade, USD/CAD is trading at 1.3335, up 0.10% on the day. On the release front, Canadian construction numbers were mixed. Housing starts climbed to 216 thousand, marking a 5-month high. Building permits declined 0.2%, its weakest reading since June. In the U.S., the sole event is JOLTS Job Openings. The indicator is expected to improve to 7.22 million, after the previous release of 7.01 million. The U.S will release a host of inflation indicators this week, starting with the Producer Prices Index on Tuesday.
The spotlight was on job numbers on Friday, with key indicators on both sides of the border. Canada’s economy added a stunning 94.1 thousand jobs, crushing the estimate of 10.5 thousand. The unemployment rate dropped from 5.8% to 5.6%. The strong performance boosted the Canadian dollar on Friday, after losing ground for three straight days.
It was a completely different story in the United States. Nonfarm employment change was weaker than expected, plunging from 250 thousand to 155 thousand. This was well off the forecast of 198 thousand. Wage growth remained stuck at 0.2%, missing the estimate of 0.3%. There was better news from the unemployment rate, which remained at a sizzling 3.7%. The data points to slowing growth in the U.S, which could lead to a change in monetary policy. The Federal Reserve minutes from the November meeting indicated that policymakers discussed changing their stance of gradual increases rate increases. The markets are currently looking at one rate hike next year – just a few months ago, analysts were predicting up to rate hikes in 2019.
European open – Tough week for UK and markets
Global growth and Brexit fears dominate proceedings
USD/CAD Fundamentals
-
1:30 BoC Deputy Governor Lane Speaks
-
8:15 Canadian Housing Starts. Estimate 198K. Actual 216K
-
8:30 Canadian Building Permits. Estimate -0.2%. Actual -0.2%
-
10:00 US JOLTS Openings. Estimate 7.22M
-
8:30 US PPI. Estimate 0.0%
-
8:30 US Core PPI. Estimate 0.1%
Open: 1.3322 High: 1.3341 Low: 1.3293 Close: 1.3335
USD/CAD Technical
S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
1.3099 |
1.3198 |
1.3292 |
1.3382 |
1.3461 |
1.3552 |
In the Asian session, USD/CAD ticked higher but then retracted. The pair posted small gains in European trade and has posted further gains early in the North American session
-
1.3292 is providing support
-
1.3382 is the next resistance line
-
Current range: 1.3292 to 1.3382
Further levels in both directions:
-
Below: 1.3292, 1.3198 and 1.3099
-
Above: 1.3382, 1.3461, 1.3552 and 1.3696
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.