USD/CAD: Canadian Dollar Drifting, U.S Retail Sales Jump

The Canadian dollar is showing limited movement in the Thursday session. Currently, is trading at 1.3229, down 0.10% on the day. On the release front, it’s a busy day in the United States. rebounded with a strong gain of 0.7% in October, after a decline of 0.1% a month earlier. jumped 0.8%, after a gain of 0.1% in September. Elsewhere, the fell sharply to 12.9, shy of the estimate of 20.1 points. edged higher to 216,000, above the estimate of 213,000. This was the highest reading since August. Canadian came in at -23,000, its first decline since July. On Friday, Canada releases .

On Wednesday, U.S. consumer inflation numbers beat their estimates for October. The consumer price index posted a gain of 0.3%, its strongest gain since January. , which excludes food and energy prices edged higher to 0.2%, marking a three-month high. Both releases were in line with forecasts. Core CPI was 2.1% higher than a year ago, and this solid release means that the Fed remains on track to continue raising interest rates. The Federal Reserve holds its next policy meeting in December, with the odds of a December rate hike at 72%, according to the CME Group (NASDAQ:).

The Canadian dollar continues to struggle in November. Earlier in the month, USD/CAD touched a high of 1.3264, its highest level since July. The currency tends to lose ground when risk appetite is low, and trouble spots such as U.S.-China relations, Brexit and the Italian budget crisis have unnerved global equity markets. A hawkish Federal Reserve has also led to investors snapping up U.S. dollars. With the U.S. economy firing on all cylinders and the Fed expected to continue its stance of gradual rate increases, the Canadian dollar could continue to face headwinds in November.

USD/CAD Fundamentals

Friday (November 16)

  • 8:30 Canadian Manufacturing Sales. Estimate 0.1%

*All release times are DST

USD/CAD for Thursday, November 15, 2018

USD/CAD for Nov. 14-16,, 2018.

USD/CAD for Nov. 14-16,, 2018.

USD/CAD, November 15 at 8:10 EST

Open: 1.3242 High: 1.3250 Low: 1.3210 Close: 1.3229

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2970 13099 1.3198 1.3292 1.3383 1.3461

USD/CAD ticked higher in the Asian session but then retracted. The pair showed little movement in the European session and is unchanged in the North American session

  • 1.3198 is providing support
  • 1.3292 is the next resistance line
  • Current range: 1.3198 to 1.3292

Further levels in both directions:

  • Below: 1.3198, 1.3099, 1.2970 and 1.2831
  • Above: 1.3292, 1.3383 and 1.3461

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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