The Canadian dollar has edged higher in the Tuesday session. In the North American session, USD/CAD is trading at 1.2713, down 0.16% on the day. On the release front, there are no Canadian indicators on the schedule. Central bankers will attend an ECB event in Frankfurt, with Fed Chair Janet Yellen participating in a panel discussion. The U.S. PPI reports are expected to show very small gains. Wednesday promises to be busy, with the U.S. releasing CPI and retail sales reports.
U.S. President Donald Trump is wrapping up his tour of Asian Pacific countries, and he reiterated his message of “America first.” This protectionist stance could signal trouble for Canada and Mexico, as Trump has vowed to renegotiate the NAFTA free trade agreement. On his Asian trip, Trump reiterated that he favors bilateral trade agreements rather than multilateral arrangements. Negotiators from the three countries are meeting for another round of talks on Wednesday, and by all accounts, the talks are progressing slowly. NAFTA covers more than $1 trillion a year in trade, and if the agreement is not renegotiated, the Canadian economy will be adversely affected, and the Canadian dollar would likely lose ground against the greenback.
Investors are keeping a close eye on developments with Trump’s tax proposal. There are some differences in the House and Senate bills, with some Republicans opposed to eliminating federal deductions of state and local taxes. The Republicans hope to present Trump with a new tax code by the end of the year, but with Democrats putting up fierce resistance, it’s unclear whether the bill will have enough votes to get through Congress. If the proposal is successful, the resulting economic growth could lead to higher interest rates, which would likely boost the U.S. dollar against other currencies.
Tuesday (Nov 14)
Wednesday (Nov. 15)
*All release times are GMT
*Key events are in bold
USD/CAD for Tuesday, Nov. 14, 2017
USD/CAD, Nov. 14 at 7:50 EDT
Open: 1.2733 High: 1.2758 Low: 1.2725 Close: 1.2716
USD/CAD was flat in the Asian session and has edged lower in European trade
Further levels in both directions:
OANDA’s Open Positions Ratio
USD/CAD ratio is unchanged in the Tuesday session. Currently, long positions have a majority (57%), indicative of trader bias towards USD/CAD continuing to move higher.
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.
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