Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

USD/CAD: Canadian Dollar At 3-Week High As Greenback Retreats

By Kenny FisherForexSep 20, 2018 10:47
ca.investing.com/analysis/usdcad-canadian-dollar-at-3week-high-as-greenback-200197615
USD/CAD: Canadian Dollar At 3-Week High As Greenback Retreats
By Kenny Fisher   |  Sep 20, 2018 10:47
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar has posted small gains in the Thursday session. Currently, USD/CAD is trading at 1.2908, down 0.10% on the day. On the release front, Canada releases ADP nonfarm employment change. In the U.S., the Philly Fed Manufacturing Index is expected to jump to 17.5 points, while unemployment claims are forecast to climb to 210,000. On Friday, Canada releases CPI, which is expected to post a rare decline.

On Wednesday, there were key events on both sides of the border. Canada released Manufacturing Sales, posting a gain of 0.9%, which was within expectations. Still, the indicator has weakened for a third straight month, which could raise concern about the strength of the manufacturing sector. In the U.S., construction numbers were a mixed bag. Building Permits disappointed, dropping from 1.31 million to 1.23 million. This was well short of the estimate of 1.31 million and marked the weakest gain since September. There was better news from Housing Starts, which jumped from 1.17 million to 1.28 million, above the estimate of 1.24 million. This was a three-month high. On Thursday, we’ll get a look at Existing Home Sales, which has been on a nasty downtrend, losing ground for four straight months. The indicator is expected to improve slightly, to 5.36 million.

U.S. President Donald Trump fired another tariff salvo earlier this week, and the Chinese have vowed to retaliate. This has become an all-too familiar script, which was repeated on Monday, as the U.S. announced 10% tariffs on some $200 billion worth of Chinese goods. Only this time, investors didn’t panic and the Canadian dollar and other currencies have held their own against the greenback. Why have the currency markets reacted so calmly? Investors appeared to have been ready for a move by Trump, and may be sighing in relief that the tariff was set at 10% rather than at 25%. One senior economist summed up Trump’s most recent salvo as “bad but manageable.” However, if the Chinese do indeed retaliate and the U.S. takes further measures, this would likely shake up the currency markets and boost the U.S. dollar.

USD/CAD Fundamentals

Thursday (September 20)

  • 8:30 Canadian ADP Nonfarm Employment Change
  • 8:30 US Philly Fed Manufacturing Index. Estimate 17.5
  • 8:30 US Unemployment Claims. Estimate 210K
  • 10:00 Eurozone Consumer Confidence. Estimate -2
  • 10:00 US CB Leading Index. Estimate 0.5%
  • 10:00 US Existing Home Sales. Estimate 5.36M
  • 10:30 US Natural Gas Storage. Estimate 81B

Friday (September 21)

  • 8:30 Canadian CPI. Estimate -0.1%
  • 8:30 Canadian Retail Sales. Estimate 0.6%

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, September 20, 2018

USD/CAD for Sept. 19-21, 2018.
USD/CAD for Sept. 19-21, 2018.

USD/CAD, September 20 at 7:30 DST

Open: 1.2920 High: 1.2935 Low: 1.2894 Close: 1.2909

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2515 1.2666 1.2830 1.2970 1.3067 1.3160

USD/CAD was flat in the Asian session and has ticked lower in European trade

  • 1.2830 is providing support
  • 1.2970 is the next resistance line
  • Current range: 1.2830 to 1.2970

Further levels in both directions:

  • Below: 1.2830, 1.2666 and 1.2515
  • Above: 1.2970, 1.3067, 1.3160 and 1.3292

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 that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

USD/CAD: Canadian Dollar At 3-Week High As Greenback Retreats
 

Related Articles

Kenny Fisher
CAD Rattled By FOMC, Risk Aversion By Kenny Fisher - Aug 19, 2021

The Canadian dollar is sharply lower on Thursday, as the currency has fallen to a four-week low. Currently, USD/CAD is trading at 1.2809, up 1.18% on the day. FOMC Signals Taper Is...

Blake Morrow
Chart Of The Day: CAD/JPY By Blake Morrow - Apr 07, 2021

CAD/JPY posted a false breakout last week above the 88.00 level. At that time, the divergent and overbought RSI suggested the pair would pullback. As we drop back towards the 61.8%...

USD/CAD: Canadian Dollar At 3-Week High As Greenback Retreats

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email