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

USD/CAD: Canadian Dollar Trading Sideways As Middle East In Focus

By Kenny FisherForexApr 12, 2018 09:28
ca.investing.com/analysis/usdcad-canadian-dollar-trading-sideways-as-middle-east-in-focus-200196931
USD/CAD: Canadian Dollar Trading Sideways As Middle East In Focus
By Kenny Fisher   |  Apr 12, 2018 09:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar is showing limited movement in the Thursday session. Currently, USD/CAD is trading at 1.2593, up 0.10% on the day. In economic news, it’s a quiet day on both sides of the border. U.S. unemployment claims is expected to fall to 231,000. In Canada, the New Housing Price Index is forecast to edge up to 0.1%. On Friday, the U.S. releases UoM Consumer Sentiment.

The Canadian dollar has flexed some muscle this week, but the minor currency could face some turbulence, as the markets are braced for a U.S. strike against Syria. This follows an alleged chemical attack by Syrian forces against rebels, and a UN Security Council meeting ended inconclusively after Russia cast a veto on a U.S. proposal to probe the attack. U.S. President Donald Trump has warned that a U.S. response is imminent, while Russia has countered that it will respond to any U.S. move. Matters could get very nasty if Trump makes good on his promise, as investor risk appetite could sink and drag down minor currencies such as the Canadian dollar.

There were no surprises in the Federal Reserve minutes, but the generally hawkish tone has helped support the U.S. dollar. All of the Fed policymakers indicated that the U.S. economy would continue to improve and that inflation would rise in the next few months. At the March meeting, the Fed unanimously voted to raise rates by a quarter point, bringing the benchmark rate to a range between 1.50% and 1.75%. The Fed projection for rate policy in 2018 remains at three hikes, although there is speculation that the Fed could revise the forecast to four rate hikes. Last week, Fed Chair Jerome Powell said that the Fed would likely continue to raise rates in order to keep a lid on inflation, but added that the rate moves would be gradual. A new headache for the Fed is the escalating trade battle between the U.S. and China, which could hurt the economy and raise consumer prices. As for the next two rate meetings, the markets expect Powell & Co. to sit tight in May and raise rates at the June meeting.

The Bank of Canada Business Outlook Survey was released earlier this week. The survey pointed to a generally upbeat business sector and has helped boost the Canadian dollar. The survey found widespread intention by companies to increase investment and hiring, and “forward-looking sales indicators remain positive across most regions and sectors”. Still, the report is unlikely to change the current sentiment that the BoC will not raise rates at next week’s policy meeting.

USD/CAD Fundamentals

Thursday (April 12)

  • 8:30 US Unemployment Claims. Estimate 231K
  • 8:30 Canadian NHPI. Estimate 0.1%

Friday (April 13)

  • 10:00 US Preliminary UoM Consumer Sentiment. Estimate 100.6

*All release times are GMT

*Key events are in bold

USD/CAD for Thursday, April 12, 2018

USD/CAD for April 11-13, 2018.
USD/CAD for April 11-13, 2018.

USD/CAD, April 12 at 8:50 EST

Open: 1.2581 High: 1.2616 Low: 1.2562 Close: 1.2593

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2397 1.2496 1.2590 1.2687 1.2757 1.2850

USD/CAD ticked higher in the Asian session. In the European session, the pair posted slight gains but has retracted

  • 1.2590 is under pressure in support
  • 1.2687 is the next resistance line
  • Current range: 1.2590 to 1.2687

Further levels in both directions:

  • Below: 1.2590, 1.2496 and 1.2397
  • Above: 1.2687, 1.2757, 1.2850 and 1.2930

OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged in the Thursday session. Currently, long positions have a majority (57%), indicative of 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.

USD/CAD: Canadian Dollar Trading Sideways As Middle East In Focus
 

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 Trading Sideways As Middle East In Focus

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