USD/CAD: Canadian Dollar Higher On Stronger Business Optimism

The Canadian dollar has posted gains in the Tuesday session. Currently, is trading at 1.2950, down 0.31% on the day. On the release front, was dismal, with a gain of just C$2.82 billion. This was much smaller than the estimate of C$10.05 billion. In the U.S., there are no major events on the schedule. is expected to dip to 6.90 million. The markets are still waiting for the U.S. Treasury to release its semi-annual currency report, which may occur later on Tuesday. On Wednesday, Canada releases . The U.S. will release and , and the Federal Reserve will publish its minutes from the September policy meeting.

USD/CAD has lost ground this week, as the Canadian dollar has recovered most of last week’s losses. The currency received a boost from an optimistic Bank of Canada business survey on Monday. The poll found that businesses expect higher sales for both domestic and foreign customers. Companies are reporting increased investment and hiring, and the mood is optimistic in the business sector. Investors are keeping an eye on the Bank of Canada, which set the benchmark rate next week. The markets are widely expecting the BoC to raise rates by a quarter-point, which would match the Fed rate hike in September.

U.S. data were a mixed bag on Monday, as retail sales were soft but manufacturing data was solid. posted a meager gain of 0.1%, shy of the estimate of 0.4%. surprised with a decline of 0.1%, compared with an estimate of 0.4%. This marked the first decline since June 2017. There was better news from the manufacturing front, as strengthened to 21.1, above the estimate of 20.4 points.

USD/CAD Fundamentals

Wednesday (October 17)

  • 8:30 Canadian Manufacturing Sales
  • 8:30 US Building Permits. Estimate 1.28M
  • 8:30 US Housing Starts. Estimate 1.21M
  • 10:30 US Inventories
  • 12:10 US FOMC Member Lael Brainard Speaks
  • 14:00 US FOMC Meeting Minutes

*All release times are DST

*Key events are in bold

USD/CAD for Tuesday, October 16, 2018

USD/CAD for Oct. 15,, 2018.

USD/CAD for Oct. 15,, 2018.

USD/CAD, October 16 at 8:55 DST

Open: 1.2991 High: 1.2999 Low: 1.2950 Close: 1.2950

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2649 12733 1.2831 1.2970 1.3067 1.3198

USD/CAD ticked higher in the Asian session. The pair has posted losses in the European session and is steady early in North American trade

  • 1.2831 is providing support
  • 1.2970 has switched to a resistance line after losses by USD/CAD
  • Current range: 1.2831 to 1.2970

Further levels in both directions:

  • Below: 1.2831, 1.2733 and 1.2649
  • Above: 1.2970, 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.

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