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, Wholesale Sales Fall

By Kenny FisherForexOct 22, 2018 12:51
ca.investing.com/analysis/usdcad-canadian-dollar-trading-sideways-wholesale-sales-fall-200197765
USD/CAD: Canadian Dollar Trading Sideways, Wholesale Sales Fall
By Kenny Fisher   |  Oct 22, 2018 12:51
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar has edged higher at the start of the week. In the Monday session, USD/CAD is trading at 1.3097, down 0.04% on the day. On the release front, it’s a quiet start to the week. Canadian Wholesale Sales declined by 0.1%, after a strong gain of 1.5% in the previous release.

It was a disappointing end to the week for Canadian numbers, as consumer spending and inflation data dropped into negative territory. Core CPI dropped by 0.4%, weaker than the estimate of -0.1%. Core Retail Sales declined by 0.4%, missing the estimate of 0.1%. Retail sales missed the forecast of 0.1%, with a reading of -0.4%. Will Friday’s dismal consumer numbers affect the Bank of Canada’s plan to raise rates on Wednesday? The markets are still expecting the BoC to raise rates by a quarter-point, which would mark the third rate increase in 2018. With Canada, the U.S. and Mexico about to enter the USMCA, which replaces the NAFTA pact, the last obstacle for the BoC on the path to normalization has been removed and analysts are now expecting three rate hikes in 2019, up from a forecast of two hikes just a few months ago.

The U.S. dollar was broadly higher on Thursday, after a hawkish tone from the Federal Reserve minutes. The minutes indicated that a majority of members want to continue raising interest rates until the U.S. economy shows signs of slowing down. However, the duration of a tighter policy remains unclear, as the minutes noted that “there is considerable uncertainty surrounding all estimates of the neutral federal funds rate.” This would likely be around the 3-percent level, which will not be reached until the second half of 2019, as the Fed has indicated it will raise rates three times next year. At the September meeting, the Fed removed the phrase “the stance of monetary policy remains accommodative,” which was considered outdated, given the policy of steady rate hikes. As rates approach the “neutral rate,” we could see further changes in language at upcoming policy meetings.

USD/CAD Fundamentals

Tuesday (October 23)

  • 10:00 US Richmond Manufacturing Index. Estimate 25
  • 13:30 US FOMC Member Bostic Speaks

*All release times are DST

USD/CAD for Monday, October 22, 2018

USD/CAD for Oct. 21-23, 2018.
USD/CAD for Oct. 21-23, 2018.

USD/CAD, October 22 at 8:15 DST

Open: 1.3102 High: 1.3118 Low: 13080 Close: 1.3097

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2831 12970 1.3067 1.3198 1.3292 1.3387

USD/CAD ticked lower in the Asian session and is showing limited movement in European trade

  • 1.3067 is providing support
  • 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

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, Wholesale Sales Fall
 

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, Wholesale Sales Fall

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