USD/CAD: Canadian Dollar gains on optimism over USMCA trade deal

Canadian dollar has recovered early losses on positive USMCA-related newsflow.
USD/CAD is trading at the 100-day average support of 1.3230.
Thursday's low is the level to beat for the bears.

Omkar Godbole FXStreet Contributor

The bid tone around the Canadian dollar (CAD) has strengthened with reports stating that an agreement on the US-Mexico-Canada Agreement (USMCA) is close and there could be an official announcement of the same on Tuesday.

The USD/CAD pair is currently trading at 1.3230, representing marginal losses on the day, having hit a high of 1.3245 in early Asia.

Canadian Prime Minister Justin Trudeu’s office issued a statement at 1:03 GMT stating that Trudeau spoke with Trump about USMCA and the two are working out the final negotiations of the deal.

Meanwhile, the US House and Means Committee Chairman Neal and the House Speaker Nancy Pelosi said that an official announcement is likely to come through on Tuesday. White House adviser Jared kushner also echoed similar sentiments soon before press time.

The Canadian dollar has erased early losses on positive trade related newsflow and may extend gains further during the day ahead. That said, the technical outlook for USD/CAD would turn bearish only below Thursday’s low of 1.3158.

The CAD took a beating on Friday after the US jobs data for November blew past expectations, forcing markets to price out the prospects of a Federal Reserve rate cut in 2020. Meanwhile, the Canadian economy unexpectedly shed 71k jobs, the biggest loss since the financial crisis.

Technical levels

USD/CAD

Overview
Today last price	1.3231
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3228

Trends
Daily SMA20	1.326
Daily SMA50	1.3217
Daily SMA100	1.3231
Daily SMA200	1.328

Levels
Previous Daily High	1.3267
Previous Daily Low	1.3222
Previous Weekly High	1.3322
Previous Weekly Low	1.3158
Previous Monthly High	1.3328
Previous Monthly Low	1.3114
Daily Fibonacci 38.2%	1.3239
Daily Fibonacci 61.8%	1.325
Daily Pivot Point S1	1.3212
Daily Pivot Point S2	1.3195
Daily Pivot Point S3	1.3167
Daily Pivot Point R1	1.3256
Daily Pivot Point R2	1.3283
Daily Pivot Point R3	1.33

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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