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USD/CAD: Lack Of Data Leaves Canadian Dollar Lower

By Kenny FisherForexAug 27, 2018 09:04
ca.investing.com/analysis/usdcad-lack-of-data-leaves-canadian-dollar-lower-200197486
USD/CAD: Lack Of Data Leaves Canadian Dollar Lower
By Kenny Fisher   |  Aug 27, 2018 09:04
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The Canadian dollar has recorded slight gains in the Monday session, paring some of the losses seen on Friday. Currently, USD/CAD is trading at 1.3047, up 0.17% on the day. There are no Canadian or U.S. events on the schedule. On Tuesday, the U.S. releases CB Consumer Confidence.

The new trading week has started with reports that the NAFTA negotiations are showing progress. The Mexican peso has responded with strong gains on Monday, but the Canadian dollar has been steady. A senior Mexican official said that the issues surrounding the auto sector were “basically resolved,” and U.S. President Donald Trump said on Saturday that a deal was near. A new NAFTA agreement would reduce trade tensions between the U.S. and the other two NAFTA members, Canada and Mexico. The auto sector is a key pillar of the Canadian economy, and a new NAFTA pact should boost confidence in the Canadian economy and provide a boost to the Canadian dollar.

Proceed with caution. This sums up the dovish message from Jerome Powell, who spoke at the Jackson Hole Economic Symposium on Friday. His remarks sent the dollar broadly lower and the Canadian dollar jumped on the bandwagon and ended the week with gains. Powell reiterated that the Fed would continue its policy of gradual interest rate hikes, saying that a cautious approach was prudent. The Fed has faced criticism about its current policy from both sides. some analysts argue that the Fed has been too aggressive, given weak inflation, while others say the Fed should tighten more quickly, due to the extremely tight labor market. Powell appeared to take a middle approach of raising rates, but slowly. The Fed has already raised rates twice this year, and a September hike is practically a given, with the CME Group (NASDAQ:CME) estimating the odds of a hike at 96%. The odds of a December hike currently stand at 66%.

USD/CAD Fundamentals

Monday (August 27)

  • There are no Canadian or U.S. events

Tuesday (August 28)

  • 10:00 US CB Consumer Confidence. Estimate 126.6

*All release times are DST

*Key events are in bold

USD/CAD for Monday, August 27, 2018

USD/CAD for Aug. 26-28, 2018.
USD/CAD for Aug. 26-28, 2018.

USD/CAD, August 27 at 8:15 DST

Open: 1.3025 High: 1.3067 Low: 1.3001 Close: 1.3047

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3067 1.3160 1.3292

USD/CAD ticked lower in the Asian session. The pair has reversed directions in European trade and moved higher

  • 1.2970 is providing support
  • 1.3067 was tested earlier in resistance
  • Current range: 1.2970 to 1.3067

Further levels in both directions:

  • Below: 1.2970, 1.2831 and 1.2733
  • Above: 1.3067, 1.3160, 1.3292 and 1.3436

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: Lack Of Data Leaves Canadian Dollar Lower
 

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USD/CAD: Lack Of Data Leaves Canadian Dollar Lower

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