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

USD/CAD: Canadian Dollar Improves As U.S. Eases On NAFTA Demands

By Kenny FisherForexMar 21, 2018 10:33
ca.investing.com/analysis/usdcad-canadian-dollar-improves-as-us-eases-on-nafta-demands-200196837
USD/CAD: Canadian Dollar Improves As U.S. Eases On NAFTA Demands
By Kenny Fisher   |  Mar 21, 2018 10:33
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar has posted considerable gains in the Wednesday session. Currently, USD/CAD is trading at 1.2986, down 0.66% on the day. On the release front, there are no Canadian indicators on the schedule. In the U.S., the current account deficit widened to $128 billion, above the estimate of $125 billion. On the housing front, Existing Home Sales is forecast to rise to 5.41 million. All eyes are on the Federal Reserve, which is expected to raise the benchmark rate to a range of between 1.50% and 1.75%. On Thursday, the U.S. releases unemployment claims.

A protectionist president in Washington continues to keep policymakers in Ottawa up late at night, as some 80% of Canadian exports head to its southern neighbor. The latest scare for Canada has been the U.S. decision to slap tariffs on steel and aluminum products, as Canada is the largest exporter of steel to the U.S. Canada avoided a bullet as President Donald Trump announced that the Canada and Mexico would be exempt from the tariffs, but the specter of the U.S. involved in trade wars has weighed on the fragile Canadian dollar. There was some positive news earlier on Wednesday, with a report that the U.S. has dropped its demand that vehicles produced in Canada or Mexico that are destined to the U.S. contain a minimum of 50% U.S. content. This demand was one of the key sticking points in the negotiations, and its removal should speed up talks on the renegotiated NAFTA agreement.

The markets are keeping a close eye on the Federal Reserve, which will release a rate statement later in the day. The Fed is expected to raise rates for the first time in 2018, and Fed Chair Jerome Powell will preside as chair of the FOMC for the first time, followed by Powell’s first post-FMOC press conference. The Fed has sounded marginally more hawkish recently – will this trend continue in the rate statement? The Fed rate projection remains at three rates for 2018, but with the US economy continuing to perform well, this forecast could be revised upwards to four rates. If the rate statement is unexpectedly hawkish, the US dollar could respond with gains.

USD/CAD Fundamentals

Wednesday (March 21)

  • 8:30 US Current Account. Estimate -125B. Actual -128B
  • 10:00 US Existing Home Sales. Estimate 5.41M
  • 14:00 US FOMC Economic Projections
  • 14:00 US FOMC Statement
  • 14:00 US Federal Funds Rate. Estimate <1.75%
  • 14:30 US FOMC Press Conference

Thursday (March 22)

  • 8:30 US Unemployment Claims. Estimate 225K

*All release times are GMT

*Key events are in bold

USD/CAD for Wednesday, March 21, 2018

USD/CAD for March 20-22, 2018.
USD/CAD for March 20-22, 2018.

USD/CAD, March 21 at 8:40 EST

Open: 1.3072 High: 1.3078 Low: 1.2988 Close: 1.2986

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2757 1.2850 1.2930 1.3050 1.3165 1.3260

USD/CAD posted gains in the Asian session. In European trade, the pair moved higher but has reversed directions and has posted considerable losses

  • 1.2930 is providing support
  • 1.3050 is the next line in resistance
  • Current range: 1.2930 to 1.3050

Further levels in both directions:

  • Below: 1.2930, 1.2850 and 1.2757
  • Above: 1.3050, 1.3165, 1.3260 and 1.3350

OANDA’s Open Positions Ratio

USD/CAD ratio is unchanged in the Wednesday session. Currently, short positions have a majority (64%), indicative of USD/CAD continuing to move lower.

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 Improves As U.S. Eases On NAFTA Demands
 

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 Improves As U.S. Eases On NAFTA Demands

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