The Canadian dollar continues to lose ground, as the currency has posted five straight losing sessions. Currently, USD/CAD is trading at 1.2997, up 0.28% on the day. On the release front, Canadian Housing Starts dropped sharply, from 201,000 to 189,000, well short of the estimate of 203,000. On Wednesday, Canada releases Building Permits, while the U.S. publishes PPI and the U.S. Treasury Currency report, a semi-annual publication.
Traders are awaiting the U.S. Treasury’s next foreign exchange report, which was last released in April. In that report, the U.S. did not name any of its major partners as currency manipulators, but it did criticize China for the “non-market direction” of its economy. Since then, the Trump administration has imposed some $200 billion in tariffs on Chinese goods. China has retaliated with its own tariffs on U.S. goods, and there has been speculation that China could respond to the U.S. tariffs by devaluating the Chinese yuan, in order to bolster Chinese exports. In 2015 and 2016, the markets dropped sharply on fears that China would implement a major devaluation of its currency. The report should be treated as a market-mover.
Canada’s job numbers in September were excellent, but the Canadian dollar failed to gain ground on the strong data, which was released on Friday. The economy created 63,300 jobs in September, rebounding after losing 51,600 a month earlier. The unemployment rate dipped from 6.0% to 5.9%, matching the estimate. There was more good news as the country posted a surplus of C$0.5 billion. This marked the first surplus since January 2017. On Thursday, Canada releases CPI reports.
Tuesday (October 9)
Wednesday (October 10)
*All release times are DST
*Key events are in bold
USD/CAD for Tuesday, October 9, 2018
USD/CAD, October 9 at 8:20 DST
Open: 1.2961 High: 1.3000 Low: 1.2951 Close: 1.2998
USD/CAD showed little movement in the Asian session. In European trade, the pair posted small gains but has retracted.
Further levels in both directions:
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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