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 Improves As U.S. Suspends Tariff Increase

By Kenny FisherForexDec 03, 2018 10:58
ca.investing.com/analysis/usdcad-canadian-dollar-improves-as-us-suspends-tariff-increase-200197961
USD/CAD: Canadian Dollar Improves As U.S. Suspends Tariff Increase
By Kenny Fisher   |  Dec 03, 2018 10:58
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar has jumped to a two-week high in the Monday session. Currently, USD/CAD is trading at 1.3175, down 0.88% on the day. On the release front, the key U.S. indicator is ISM Manufacturing PMI, which is expected to edge lower to 57.5 points. Canada will also release Manufacturing PMI. On Tuesday, Canada publishes Labor Productivity, which is forecast to dip to 0.4%.

Canada’s GDP declined 0.2% in September, marking the first month the economy has contracted since January. This fell short of the estimate of 0.1%. The decline was attributed to weaker motor vehicle purchases and a softer housing market. The Bank of Canada is keeping a close eye on the strength of the economy, and the markets are predicting that the BoC will not raise interest rates at the policy meeting on Dec. 5. As well, falling oil prices is another factor in favor of the BoC not taking any action.

Investor risk appetite has jumped on Monday, and that has translated into strong gains for minor currencies like the Canadian dollar. On Monday, the currency improved to its highest level since Nov. 20. The catalyst for the boost was the meeting between U.S. President Donald Trump and Chinese President Xi Jinping on the sidelines of the G-20 summit. Just last week, Trump had threatened to raise tariffs on $200 billion in Chinese products from 10 percent to 25 percent on Jan. 1. However, the tone was optimistic after the meeting, with China receiving a short reprieve. The sides have agreed to continue talks for another 90 days, and the U.S. tariffs will take effect if no agreement is reached. The markets were clearly relieved that the tariff war has de-escalated, and European markets have jumped on Monday, following the lead of Asian markets. At the same time, the U.S. and China remain far apart on resolving the trade war, and the greenback will likely reverse directions unless the parties make substantial progress in the trade dispute, which has shaken the markets and threatens to derail global growth.

USD/CAD Fundamentals

  • Tuesday (December 4)
  • 9:30 Canadian Labor Productivity. Estimate 0.4%

USD/CAD for Monday, December 3, 2018

USD/CAD for Dec. 2-4, 2018.
USD/CAD for Dec. 2-4, 2018.

USD/CAD, December 3 at 8:40 EST

Open: 1.3291 High: 1.3291 Low: 1.3161 Close: 1.3175

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2888 1.2970 1.3099 1.3198 1.3292 1.3383

USD/CAD posted considerable losses in the Asian session and has posted small losses in European trade

  • 1.3099 is providing support
  • 1.3198 is the next resistance line
  • Current range: 1.3099 to 1.3198

Further levels in both directions:

  • Below: 1.3099, 1.2970 and 1.2888
  • Above: 1.3198, 1.3292, 1.3383 and 1.3461

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. Suspends Tariff Increase
 

Related Articles

USD/CAD: Canadian Dollar Improves As U.S. Suspends Tariff Increase

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