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USD/CAD:Canadian Dollar Edges Higher

By Kenny FisherForexOct 12, 2018 11:10
ca.investing.com/analysis/usdcadcanadian-dollar-edges-higher-200197725
USD/CAD:Canadian Dollar Edges Higher
By Kenny Fisher   |  Oct 12, 2018 11:10
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The Canadian dollar has edged higher in the Friday session, following the trend seen on Thursday. Currently, USD/CAD is trading at 1.3011, down 0.18% on the day. On the release front, there are no Canadian events on the schedule. In the U.S., today’s key indicator is UoM Consumer Sentiment, which is expected to remain above the 100-level, with an estimate of 100.4 points.

U.S. consumer inflation reports missed their estimates, and the Canadian dollar took advantage, posting gains on Thursday. CPI and Core CPI both posted small gains of 0.1%, shy of the estimate of 0.2%. On a year-to-year basis, CPI increased 2.3% in September, down from 2.7% in August. Still, with inflation above the Fed’s 2% inflation target, these readings are unlikely to affect the Fed’s plans to raise interest rates in December, which would mark the fourth rate increase this year. The likelihood of a rate hike remains high, with the CME pegging the odds at 76%.

With the U.S. economy continuing to post strong numbers, the Federal Reserve is on track to raise rates in December. This would be the fourth rate hike in 2018, and the markets are expecting three more hikes in 2019. Not surprisingly, this has put pressure on the Bank of Canada to raise rates as well. The Canadian economy is in good shape, but not nearly as strong as its southern neighbor. The Bank of Canada holds its next policy meeting on Oct. 24, and the strength of key Canadian releases will be a major factor as to whether policy-makers raise rates.

USD/CAD Fundamentals

Friday (October 12)

  • 8:30 US Import Prices. Estimate 0.3%
  • 10:00 US Preliminary UoM Consumer Sentiment. Estimate 100.4
  • 10:00 US Preliminary UoM Inflation Expectations
  • Day 1 – IMF Meetings
  • 12:30 US FOMC Member Raphael Bostic Speaks
  • 12th-18th US Federal Budget Balance. Estimate 71.0B
  • 22:30 US FOMC Member Randal Quarles Speaks

*All release times are DST

*Key events are in bold

USD/CAD for Friday, October 12, 2018

USD/CAD for Oct.11-12, 2018.
USD/CAD for Oct.11-12, 2018.

USD/CAD, October 12 at 8:05 DST

Open: 1.3034 High: 1.3041 Low: 1.3002 Close: 1.3011

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3067 1.3198 1.3292

USD/CAD has posted small losses in the Asian and European sessions

  • 1.2970 is providing support
  • 1.3067 is the next resistance line
  • Current range: 1.2970 to 1.3067

Further levels in both directions:

  • Below: 1.2970, 1.2831, 1.2733 and 1.2649
  • Above: 1.3067, 1.3198 and 1.3292

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 Edges Higher
 

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USD/CAD:Canadian Dollar Edges Higher

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