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USD/CAD: Canadian Dollar Unchanged, Investors Eye U.S.-China Talks

By Kenny FisherForexJan 29, 2019 10:09
ca.investing.com/analysis/usdcad-canadian-dollar-unchanged-investors-eye-uschina-talks-200198145
USD/CAD: Canadian Dollar Unchanged, Investors Eye U.S.-China Talks
By Kenny Fisher   |  Jan 29, 2019 10:09
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USD/CAD is showing little movement in the Tuesday session. Currently, the pair is trading at 1.3262, up 0.01% on the day. On the release front, there are no Canadian releases until Thursday. The U.S. releases CB Consumer Confidence, which is expected to drop to 125.0 points. On Wednesday, the Federal Reserve will publish its monthly rate statement.

The U.S.-China trade spat will be back in the headlines this week, as Chinese and U.S. officials will hold a second round of talks on Wednesday and Thursday. The trade tensions between the two largest economies in the world has taken a toll on the Canadian economy, which is heavily reliant on exports. On Monday, U.S. Treasury Secretary Steven Mnuchin said he expects significant progress in the talks, but warned that the sides would have to tackle “complicated issues.” Tensions between China and the U.S. have escalated in recent weeks, with the U.S. Justice Department filing criminal charges against Huawei, a Chinese technology company. The U.S. is also trying to extradite a senior Huawei executive from Canada, which has caused a serious diplomatic crisis between Canada and China.

How many times will the Fed raise rates in 2019? The answer varies, depending on who you ask. The markets are not expecting any increases, while the Federal Reserve continues to stick with a forecast of two hikes. The Congressional Budget Office (CBO) has also weighed in, saying that the expect further rate increases this year. The CBO made the forecast in its 10-year outlook update, but did not specify how many hikes. The CBO report projected growth of 2.3% for the U.S. economy in 2019, matching the forecast of the Federal Reserve.

USD/CAD Fundamentals

Wednesday (January 30)

  • 8:15 US ADP (NASDAQ:ADP) Nonfarm Employment Change. Estimate 170K
  • 14:00 US FOMC Statement
  • 14:00 US Federal Funds Rate. Estimate <2.50%
  • 14:30 US FOMC Press Conference

*All release times are EST

*Key events are in bold

USD/CAD for Tuesday, January 29, 2019

USD/CAD for Jan. 28-30, 2019.
USD/CAD for Jan. 28-30, 2019.

USD/CAD, January 29 at 8:25 EST

Open: 1.3260 High: 1.3279 Low: 1.3245 Close: 1.3262

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3049 1.3125 1.3200 1.3290 1.3383 1.3445

USD/CAD edged higher in the Asian session but then gave up these gains. The pair is showing little movement in European trade

  • 1.3200 is providing support
  • 1.3290 is the next resistance line
  • Current range: 1.3200 to 1.3290

Further levels in both directions:

  • Below: 1.3200, 1.3125 and 1.3049
  • Above: 1.3290, 1.3383, 1.3445 and 1.3552
  • 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 Unchanged, Investors Eye U.S.-China Talks
 

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USD/CAD: Canadian Dollar Unchanged, Investors Eye U.S.-China Talks

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Comments (1)
Sudhir Mada
Sudhir Mada Jan 29, 2019 17:50
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Trump is right.. fed is trying to bring down the economy...fed should stop raising the rates..
 
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