USD/CAD loses ground around the mid-1.3700s as US housing data looms

USD/CAD attracts some sellers around the mid-1.3700s on Friday.
US weekly Initial Claims rose by 231,000, the highest level in nearly three months.
House sales in Canada declined by the most in 16 months in October.
Traders will focus on the US housing data and the Canadian Industrial Product Price Index, the Raw Materials Price Index.

Lallalit Srijandorn FXStreet

The USD/CAD pair loses momentum during the Asian session on Friday. The pair is losing 0.1% on the day to trade at 1.3749, consolidating the bounce from the 1.3655 weekly low seen on Wednesday.

On Thursday, the US Initial Claims for the week ending November 11 rose by 231,000, the highest level in nearly three months. Additionally, the Continuing Jobless Claims climb to 1.865M versus 1.833M prior. The markets anticipate the Federal Reserve (Fed) is done with the tightening cycle and expect a rate cut in the middle of 2024, which might weigh on the Greenback and cap the upside of the USD/CAD pair.

On the Loonie front, The Canadian Real Estate Association (CREA) revealed on Wednesday that house sales in Canada declined by the most in 16 months in October, as rising borrowing rates kept purchasers on the sidelines. Last week, the Bank of Canada (BoC) warned businesses and households to plan as the borrowing rates would be higher than in previous years. Additionally, a decline in oil prices might lift the commodity-linked Loonie, as the country is the leading oil exporter to the US.

Looking ahead, market participants will keep an eye on the US housing data on Friday, including Building Permits and Housing Starts. The Housing Starts are estimated to drop from 1.358M to 1.35M while the Building Permits are forecast to decline from 1.471M to 1.45M. Also, the Canadian Industrial Product Price Index and the Raw Materials Price Index are due on Friday. These figures could give clear direction to the USD/CAD pair.

(This story was corrected on November 17 at 08:03 GMT to clarify that the USD/CAD pair consolidated gains from Wednesday's lows. It was also corrected to say that US Jobless Claims data were published on Thursday, not Wednesday, and that the prior figure of Continuing Claims stood at 1.833 million, not 1.883 million.)

USD/CAD

Overview
Today last price	1.3749
Today Daily Change	-0.0014
Today Daily Change %	-0.10
Today daily open	1.3763

Trends
Daily SMA20	1.377
Daily SMA50	1.3659
Daily SMA100	1.352
Daily SMA200	1.3508

Levels
Previous Daily High	1.3777
Previous Daily Low	1.3677
Previous Weekly High	1.3855
Previous Weekly Low	1.3629
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.3739
Daily Fibonacci 61.8%	1.3715
Daily Pivot Point S1	1.3701
Daily Pivot Point S2	1.364
Daily Pivot Point S3	1.3602
Daily Pivot Point R1	1.3801
Daily Pivot Point R2	1.3839
Daily Pivot Point R3	1.3901

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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