USD/CAD: Canadian Dollar Flat In Early Session Wednesday


The Canadian dollar is unchanged in the Wednesday session. Currently, the is trading at 1.3354, unchanged on the day. On the release front, there are a host of key events. orders are expected to remain at 0.1%, while core durable goods is forecast to slide by 0.5%. On the inflation front, PPI and are both projected to post a slight gain of 0.2%. There are no Canadian events on the calendar. On Thursday, the U.S. posts unemployment claims.

The Bank of Canada has been sending a dovish message to the markets, echoing the stance of the Federal Reserve. With Canada’s economy posting two straight declines, the economic slowdown appears deeper than the bank expected. The BoC hasn’t raised rates since October, and the freeze could continue until the second half of the year. If the economy does not rebound, policy-makers will have to consider a rate cut, which could stimulate economic activity but would push the Canadian dollar downwards.

The Federal Reserve has been in dovish mode since the start of the year, and weak inflation data has meant there is little pressure on policy-makers to raise rates in the near future. Core CPI edged down to 0.1%, while CPI remained steady at 0.2%. Consumer inflation remains well below the Federal Reserve’s target of 2.0 percent, so there is little pressure on the Fed to raise rates anytime soon. Policy-makers have been signalling that the Fed could stay on the sidelines until the second half of 2019, and this stance was underscored by Fed Chair Jerome Powell in a television interview on Sunday. Powell left no doubt about where the Fed stands, saying that the Fed would remain patient and was in no hurry to change interest rate policy. The dovish stance of the Fed could weigh on the dollar, as a lack of rate hikes makes the greenback less attractive to investors.

Fundamentals

Wednesday (March 13)

  • 8:30 US Core Durable Goods Orders. Estimate 0.1%
  • 8:30 US Durable Goods Orders. Estimate -0.5%
  • 8:30 US PPI. Estimate 0.2%
  • 8:30 US Core PPI. Estimate 0.2%
  • 10:00 US Construction Spending. Estimate 0.4%
  • 10:30 US Inventories. Estimate 2.7M
  • 13:01 US 30-year Bond Auction

Thursday (March 14)

  • 8:30 US Unemployment Claims. Estimate 225K
  • 10:00 US New Home Sales. Estimate 622K

*All release times are DST

*Key events are in bold

USD/CAD for Wednesday, March 13, 2019

USD/CAD for March 12-14, 2019.

USD/CAD for March 12-14, 2019.

USD/CAD, March 13 at 8:05 EST

Open: 1.3354 High: 1.3471 Low: 1.3348 Close: 1.3354

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3125 1.3200 1.3290 1.3383 1.3445 1.3552

USD/CAD ticked higher in the Asian session and is showing little movement in European trade

  • 1.3290 is providing support
  • 1.3383 is the next resistance line
  • Current range: 1.3290 to 1.3383

Further levels in both directions:

  • Below: 1.3290, 1.3200 and 1.3125
  • Above: 1.3383, 1.3445, 1.3552 and 1.3662

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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