USD/CAD: Canadian Dollar Hits 6-Week High As U.S. Oil Inventories Slump

The Canadian dollar has posted slight gains in the Thursday session. Currently, is trading at 1.3054, up 0.06% on the day. On the release front, there are no Canadian indicators for the remainder of the week. In the U.S., the focus is on durable goods orders. orders is expected to climb to 0.5% and the is forecast to jump to 3.0%. Both indicators recorded declines in the previous release. On Friday, the U.S. releases and .

Canadian policy-makers are keeping a close eye on Wednesday’s breakthrough in the EU-U.S. trade war. On Wednesday, EU Commission President Jean-Claude Juckner met with U.S. President Donald Trump, and the talks appear to have been more successful than expected. The parties agreed to hold off on any further tariffs while talks are ongoing. This is a major concession from Trump, who had threatened to impose tariffs on European car imports. U.S. tariffs on European aluminum and steel will remain in place, but Juckner pointed out that the U.S. has agreed to reassess these measures. The surprise agreement eases fears of a full-blown trans-Atlantic trade war. Will the goodwill displayed by Trump extend into some kind of agreement with Canada as well?

The Canadian dollar posted strong gains on Wednesday, following an Energy Information Administration report showed a huge decline of 6.1 million in inventories. This is the second decline in three months, and was much higher than the estimate of 2.6 million. Tensions between Iran and the U.S. have also raised concerns about oil supplies, and higher crude prices have boosted the Canadian dollar.

USD/CAD Fundamentals

Friday (July 27)

  • 8:30 US Advance GDP. Estimate 4.1%
  • 10:00 US Revised UoM Consumer Sentiment. Estimate 97.1

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, July 26, 2018

USD/CAD for July 25-27, 2018.

USD/CAD for July 25-27, 2018.

USD/CAD, July 26 at 8:05 DST

Open: 1.3046 High: 1.3061 Low: 1.3025 Close: 1.3054

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3067 1.3160 1.3292

USD/CAD inched higher in the Asian session. In European trade, the pair edged lower but has recovered

  • 1.2970 is providing support
  • 1.3067 is a weak line of 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

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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