The Canadian dollar has continued its losing ways in the Wednesday session. Currently, USD/CAD is trading at 1.2889, up 0.44% on the day. The Canadian dollar has slipped 1.0 percent this week, as USD/CAD has the 1.29 level in its sights. In economic news, Bank of Canada Governor Stephen Poloz will testify before the Standing Senate Committee on Banking. There are no key events in the U.S. On Thursday, the U.S. releases durable goods orders and unemployment claims.
The U.S. dollar continues to climb this week, buoyed by rising yields on U.S. bonds, which have hit 4-year highs. On Wednesday, 10-year U.S. Treasury notes have risen to 3.015 percent, and 2-year bonds have increased to 2.504 percent. With inflation appearing to be on the rise, there are stronger expectations that the Federal Reserve will raise rates four times in 2018, which is good news for the U.S. dollar. With oil pushing above $70 a barrel, there are concerns that inflation will rise, which has pushed bond prices lower and yields upwards. The U.S. currency has also benefitted from a reduction in geopolitical risk, with an easing of tensions between North and South Korea, and a lull in the conflict in Syria.
The trade battle between China and the U.S. has become a geopolitical hotspot, dominating the headlines and shaking global markets. After a series of tit-for-tat tariffs between the economic giants, there has been widespread concern that these moves could lead to a trade war which would slow down Chinese growth and trigger a global recession. However, the bellicose rhetoric between the sides has eased and U.S. Treasury Secretary Steven Mnuchin is scheduled to lead a delegation to Beijing. On Tuesday, President Donald Trump said that “we’ve got a very good chance at making a deal.”
USD/CAD Fundamentals
Wednesday (April 25)
- 10:30 US Crude Oil Inventories. Estimate -1.6M
- 16:15 BoC Gov Poloz Speaks
Thursday (April 26)
- 8:30 US Core Durable Goods Orders. Estimate 0.5%
- 8:30 US Durable Goods Orders. Estimate 1.6%
- 8:30 US Unemployment Claims. Estimate 230K
*All release times are DST
*Key events are in bold
USD/CAD for Wednesday, April 25, 2018
USD/CAD, April 25 at 8:00 DST
Open: 1.2833 High: 1.2890 Low: 1.2821 Close: 1.2889
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2687 | 1.2757 | 1.2850 | 1.2943 | 1.3015 | 1.3125 |
USD/CAD continues to break through resistance lines. The pair inched higher in the Asian session and has recorded additional gains in European trade
- 1.2850 has switched to a support role following gains by USD/CAD on Wednesday
- 1.2943 is the next resistance line
- Current range: 1.2850 to 1.2943
Further levels in both directions:
- Below: 1.2850, 1.2757, 1.2687 and 1.2590
- Above: 1.2943, 1.3015 and 1.3125
OANDA’s Open Positions Ratio
USD/CAD ratio is showing little movement in the Wednesday session. Currently, long and short positions are almost evenly split, indicative of a lack of trader bias as to what direction USD/CAD takes next.
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.