Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

USD/CAD: Canadian Dollar Inches Higher, U.S. CPI Next

Published 2018-03-12, 11:06 a/m
Updated 2023-07-09, 06:31 a/m

USD/CAD has ticked higher in the Monday session. In North American trade, USD/CAD is trading at 1.2830, up 0.15% on the day. On the release front, it’s a quiet start to the week. There are no Canadian indicators on the calendar. The U.S. releases the federal deficit, with an estimate of $222.3 billion. On Tuesday, Canada releases Ivey PMI and the U.S. publishes CPI reports.

The Canadian dollar ended the week on a high note, posting gains on Friday. The Canadian economy added 15,400 in February, after a sharp decline of 88,000 a month earlier. This was below the estimate of 21,300, but investors were pleased with the strong turnaround. In the U.S., employment numbers were a mix on Friday. Wage growth dropped to 0.1% in February, down from 0.3% a month earlier. This missed the estimate of 0.2%, and marked the lowest gain in four months. The news was much better from nonfarm payrolls, which soared to 313,000, crushing the estimate of 205,000. The mixed numbers have eased concerns about the Fed raising rates four times in 2018, which is good news for the Canadian dollar.

Tensions have eased somewhat regarding the tariffs which U.S. President Donald Trump imposed on Thursday. Trump has exempted Canada and Mexico from the tariffs, and has said that Washington could ease the duties on other countries as well. Importantly, is strong domestic opposition to Trump’s move, including senior Republican lawmakers who have said they will work to overturn the tariffs, which could spark an all-out trade war. So far, the markets are confident that a solution to the tariff tussle will be found.

U.S and Canada Payrolls Strong

USD/CAD Fundamentals

Monday (March 12)

  • 13:01 US 10-year Bond Auction
  • 14:00 US Federal Budget Balance. Estimate -222.3B

Tuesday (March 13)

  • 8:30 US CPI. Estimate 0.2%
  • 8:30 US Core CPI. Estimate 0.2%
  • 10:15 BoC Governor Stephen Poloz Speaks

*All release times are GMT

*Key events are in bold

USD/CAD for Monday, March 12, 2018

USD/CAD for March 11-13, 2018.

USD/CAD, March 12 at 8:00 EST

Open: 1.2811 High: 1.2838 Low: 1.2803 Close: 1.2830

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2514 1.2630 1.2757 1.2865 1.2920 1.3014

USD/CAD was flat in the Asian session and has edged higher in European trade

  • 1.2757 is providing support
  • 1.2865 is a weak resistance line
  • Current range: 1.2757 to 1.2865

Further levels in both directions:

  • Below: 1.2757, 1.2630 and 1.2514
  • Above: 1.2865, 1.2920, 1.3014 and 1.3165

OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged in the Monday session. Currently, short positions have a majority (60%), indicative of trader bias towards USD/CAD reversing directions and moving 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.