USD/CAD: Canadian Dollar Higher As Risk Appetite Returns After U.S. Election

The Canadian dollar has posted gains in the Wednesday session, is trading at 1.3080, down 0.33% on the day. On the release front, Canada releases , which is expected to improve to 50.9 points. There are no major U.S. releases on the schedule. On Thursday, Canada releases . In the U.S., the Federal Reserve will set the benchmark and release a rate statement. We’ll also get a look at unemployment claims.

Investors expressed relief that the uncertainty over the U.S. mid-term elections is over, with both the Republicans and Democrats able to point to a victory of sorts. The markets were pleased that President Donald Trump did not suffer a stinging defeat. Had the Democrats taken back both houses of Congress, Trump would have been a lame duck for the next two years, and he would have had great difficulty passing any further market-friendly reforms. The mixed results have improved risk appetite, and the Canadian dollar has responded with gains on Wednesday.

Participation was high in the mid-term elections on Tuesday, and voters rendered a split-decision. The Democrats regained control of the House of Representatives for the first time since 2010, but the Republicans maintained control of the Senate, and have increased their majority. The results are a setback for President Trump, as the Democrats will be in a stronger position to derail Trump’s plans to boost fiscal stimulus and lower taxes.

USD/CAD Fundamentals

Wednesday (November 7)

  • 10:00 Canadian Ivey PMI. Estimate 50.9
  • 10:30 US Inventories. Estimate 2.0M
  • 13:01 US 30-year Bond Auction
  • 15:00 US Consumer Credit. Estimate 15.7B

Thursday (November 8)

  • 8:15 Canadian Housing Starts. Estimate 199K
  • 8:30 US Unemployment Claims. Estimate 214K
  • 14:00 US FOMC Statement
  • 14:00 US Federal Funds Rate. Estimate

*All release times are EST

*Key events are in bold

USD/CAD for Wednesday, November 7, 2018

USD/CAD for Nov. 6-8, 2018.

USD/CAD for Nov. 6-8, 2018.

USD/CAD, November 7 at 7:45 DST

Open: 1.3124 High: 1.3159 Low: 1.3073 Close: 1.3080

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3099 1.3198 1.3292

USD/CAD posted small losses in the Asian session. The pair moved higher early in European trade, but has reversed directions and moved lower.

  • 1.2970 is providing support
  • 1.3099 is the next resistance line
  • Current range: 1.2970 to 1.3099

Further levels in both directions:

  • Below: 1.2970, 1.2831 and 1.2733
  • Above: 1.3099, 1.3198, 1.3292 and 1.3383

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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