The Canadian dollar has posted small losses in the Wednesday session. Currently, USD/CAD is trading at 1.3138, up 0.21% on the day. On the release front, Canada’s GDP posted a small gain of 0.1%, above the estimate of 0.0%. Later in the day, Bank of Canada Governor Stephen Poloz continues his testimony on Parliament Hill. In the U.S., ADP non-farm payrolls came in at 227,000, much stronger than the estimate of 188,000. This is the first of a host of employment releases, highlighted by wage growth and non-farm payrolls on Friday.
It’s been a rough October for the Canadian dollar, as diminished risk appetite has translated into softer demand for minor currencies like the Canadian dollar. The currency has slipped 1.76% in October, despite a Bank of Canada rate hike last week. At the forefront of geopolitical tensions is the trade war between the U.S. and its major partners, particularly with China. Tensions between the world’s two largest economies show no signs of easing, and the Trump administration continues to threaten further severe tariffs on China. The U.S. has also imposed steel tariffs on its two neighbors, Canada and Mexico. On Monday, Mexico’s deputy commerce minister said that Mexico would not sign the new USMCA pact, which replaces NAFTA, unless the U.S. agreed to remove the tariffs against Mexico and Canada.
USD/CAD Fundamentals
Thursday (November 1)
- 8:30 US Unemployment Claims. Estimate 213K
- 10:00 US ISM Manufacturing PMI. Estimate 59.0
*All release times are DST
*Key events are in bold
USD/CAD, October 31 at 8:10 DST
Open: 1.3111 High: 1.3140 Low: 1.3107 Close: 1.3127
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2831 | 12970 | 1.3067 | 1.3198 | 1.3292 | 1.3383 |
In the Asian session, USD/CAD edged lower but recovered. in European trade, the pair rose slightly but has given up these gains
- 1.3067 is providing resistance
- 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
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