Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

USD/CAD: Canadian Dollar Continues To Drift, BoC Expected To Raise Rates

By Kenny FisherForexOct 23, 2018 11:04
ca.investing.com/analysis/usdcad-canadian-dollar-continues-to-drift-boc-expected-to-raise-rates-200197773
USD/CAD: Canadian Dollar Continues To Drift, BoC Expected To Raise Rates
By Kenny Fisher   |  Oct 23, 2018 11:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar is trading sideways on Tuesday. Currently, USD/CAD is trading at 1.3106, up 0.04% on the day. On the release front, there are no Canadian events. In the U.S., the Richmond Manufacturing Index is expected to drop to 25 points. On Wednesday, the Bank of Canada is expected to raise the benchmark rate to 1.75%.

All eyes are on the Bank of Canada, which holds its policy meeting on Wednesday. The BoC has raised rates twice this year, and a third hike would raise rates to 1.75%, which would be the highest level since October 2008. This meeting is the first since Canada signed on to a new trade agreement with Mexico and the United States, which should provide a boost to the economy and calm investor jitters. The Federal Reserve raised rates in September and is expected to repeat in December, so a BoC rate hike will help keep the Canadian dollar attractive to investors.

Relations between the U.S. and China remain tenuous, with the markets nervous that the trade war could worsen. The U.S. Treasury Department released its semi-annual report on foreign exchange rates on Thursday, and there was some relief in the markets as the report did not name China as a currency manipulator. Still, the report said that the U.S. was “deeply disappointed’ with that China refuses to disclose the extent of its foreign currency intervention. The Chinese yuan has slipped some 9 percent since April, and U.S. officials are concerned that China has deliberately weakened the currency in order to counter U.S. tariffs on Chinese goods, and will continue to monitor China’s currency practices.

Wednesday (October 24)

  • 9:00 US HPI. Estimate 0.3%
  • 9:45 US Flash Manufacturing PMI. Estimate 55.5
  • 9:45 US Flash Services PMI. Estimate 54.1
  • 10:00 BoC Monetary Policy Report
  • 10:00 BoC Rate Statement
  • 10:00 BoC Overnight Rate. Estimate 1.75%
  • 10:00 US New Home Sales. Estimate 630K
  • 10:30 US Crude Oil Inventories
  • 11:15 BoC Press Conference
  • 13:00 US FOMC Member Raphael Bostic Speaks
  • 13:10 US FOMC Member Loretta Mester Speaks
  • 14:00 US Beige Book

*All release times are DST

*Key events are in bold

USD/CAD for Tuesday, October 23, 2018

USD/CAD for Oct. 22-24, 2018.
USD/CAD for Oct. 22-24, 2018.

USD/CAD, October 23 at 7:45 DST

Open: 1.3101 High: 1.3147 Low: 13082 Close: 1.3106

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2831 12970 1.3067 1.3198 1.3292 1.3387

USD/CAD showed limited movement in the Asian session and the trend has continued in European trade

  • 1.3067 is providing support
  • 1.3198 is the next resistance line
  • Current range: 1.3067 to 1.3198

Further levels in both directions:

  • Below: 1.3067, 1.2970, 1.2831 and 1.2733
  • Above: 1.3198, 1.3292 and 1.3387

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 Continues To Drift, BoC Expected To Raise Rates
 

Related Articles

USD/CAD: Canadian Dollar Continues To Drift, BoC Expected To Raise Rates

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