S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
1.3125 |
1.3200 |
1.3290 |
1.3383 |
1.3445 |
1.3552 |
The Canadian dollar is unchanged in the Wednesday session. Currently, the pair is trading at 1.3354, unchanged on the day. On the release front, there are a host of key events. Core durable goods orders are expected to remain at 0.1%, while core durable goods is forecast to slide by 0.5%. On the inflation front, PPI and Core PPI are both projected to post a slight gain of 0.2%. There are no Canadian events on the calendar. On Thursday, the U.S. posts unemployment claims.
The Bank of Canada has been sending a dovish message to the markets, echoing the stance of the Federal Reserve. With Canada’s economy posting two straight declines, the economic slowdown appears deeper than the bank expected. The BoC hasn’t raised rates since October, and the freeze could continue until the second half of the year. If the economy does not rebound, policymakers will have to consider a rate cut, which could stimulate economic activity but would push the Canadian dollar downwards.
The Federal Reserve has been in dovish mode since the start of the year, and weak inflation data has meant there is little pressure on policymakers to raise rates in the near future. Core CPI edged down to 0.1%, while CPI remained steady at 0.2%. Consumer inflation remains well below the Federal Reserve’s target of 2.0 percent, so there is little pressure on the Fed to raise rates anytime soon. Policymakers have been signaling that the Fed could stay on the sidelines until the second half of 2019, and this stance was underscored by Fed Chair Powell in a television interview on Sunday. Powell left no doubt about where the Fed stands, saying that the Fed would remain patient and was in no hurry to change interest rate policy. The dovish stance of the Fed could weigh on the dollar, as a lack of rate hikes makes the greenback less attractive to investors.
Pound steadies ahead of next Brexit vote
Global markets gently simmer
USD/CAD Fundamentals
-
8:30 US Core Durable Goods Orders. Estimate 0.1%
-
8:30 US Durable Goods Orders. Estimate -0.5%
-
8:30 US PPI. Estimate 0.2%
-
8:30 US Core PPI. Estimate 0.2%
-
10:00 US Construction Spending. Estimate 0.4%
-
10:30 US Crude Oil Inventories. Estimate 2.7M
-
13:01 US 30-year Bond Auction
-
8:30 US Unemployment Claims. Estimate 225K
-
10:00 US New Home Sales. Estimate 622K
Open: 1.3354 High: 1.3471 Low: 1.3348 Close: 1.3354
USD/CAD Technical
USD/CAD ticked higher in the Asian session and is showing little movement in European trade
-
1.3290 is providing 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 and 1.3125
-
Above: 1.3383, 1.3445, 1.3552 and 1.3662
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 stays in daily range slightly below 1.0900
![EUR/USD stays in daily range slightly below 1.0900](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/MoneyEURUSD_3_XtraSmall.jpg)
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
![GBP/USD treads water above 1.2900 amid risk recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/british-banknotes-14144912_XtraSmall.jpg)
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold extends slide below $2,400
![Gold extends slide below $2,400](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
![Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/ripple_XtraSmall.jpg)
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Election volatility and tech earnings take centre stage
![Election volatility and tech earnings take centre stage](https://editorial.fxstreet.com/images/TechnicalAnalysis/Volatility/Bands%20(bollinger)/stock-market-graph-gm532464153-55981218_XtraSmall.jpg)
The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.