The Canadian dollar has posted gains on Thursday, continuing the upward movement that marked the Wednesday session. Currently, USD/CAD is trading at 1.3060, up 0.31% on the day. In economic news, the U.S. released Final GDP. In the U.S., there a host of key indicators. Core durable goods orders and durable goods orders are expected to improve in August, with forecasts of 0.4% and 1.9% percent, respectively. Final GDP is expected to post a strong gain of 4.2% and unemployment claims are forecast to climb to 209,000. There are no data releases in Canada. On Friday, Canada releases monthly GDP and inflation indicators. The U.S. releases Personal Spending and UoM Consumer Sentiment.
As widely expected, the Federal Reserve pressed that rate trigger for the third time this year, raising the benchmark rate by a quarter-point, to a range of 2 percent to 2.25 percent. The Fed intends to continue gradually raising rates, with another rate hike expected in December and three hikes in 2019. What was of more interest to investors was the rate statement, in which the Fed removed the word ‘accommodative’ in the statement, which means that the Fed now considers monetary policy to be neutral. Fed Chair Jerome Powell, in a bid to keep markets calm, stated in a follow-up press conference that removing accommodative language in the statement did not reflect a change in policy. Still, the markets were upbeat after the Fed meeting and the U.S. dollar has responded with gains against the Canadian dollar on Thursday.
USD/CAD Fundamentals
Thursday (September 27)
- 8:30 US Core Durable Goods Orders. Estimate 0.4%
- 8:30 US Final GDP. Estimate 4.2%
- 8:30 US Durable Goods Orders. Estimate 1.9%
- 8:30 US Final GDP Price Index. Estimate 3.0%
- 8:30 US Goods Trade Balance. Estimate -70.6B
- 8:30 US Preliminary Wholesale Inventories. Estimate 0.3%
- 8:30 US Unemployment Claims. Estimate 208K
- 9:30 ECB President Draghi Speaks
- 10:00 US Pending Home Sales. Estimate -0.2%
- 10:30 US Natural Gas Storage. Estimate 64B
- 16:30 US Fed Chair Powell Speaks
- 17:45 BoC Governor Poloz Speaks
Friday (September 28)
- 8:30 Canadian GDP. Estimate 0.1%
- 8:30 Canadian RMPI. Estimate 0.8%
- 8:30 US Personal Spending. Estimate 0.3%
- 10:00 US Revised UoM Consumer Sentiment. Estimate 100.5
*All release times are DST
*Key events are in bold
USD/CAD for Thursday, September 27, 2018
USD/CAD, September 27 at 8:05 DST
Open: 1.3020 High: 1.3065 Low: 1.3015 Close: 1.3060
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2733 | 12831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 |
USD/CAD has posted slight gains in the Asian and European sessions
- 1.2970 is a support level
- 1.3067 is under pressure 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
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