- July 24, 2018
- Posted by: Trading
- Category: Currency Forecast
The Canadian dollar is almost unchanged in the Monday session, after strong gains on Friday. Currently, is trading at 1.3139, down 0.02% on the day. On the release front, it’s a quiet start to the week. Canadian jumped 1.2%, crushing the estimate of 0.6%. This marked the strongest gain since October. In the U.S., the sole indicator is , which is expected to rise to 5.46 million.
Canadian retail sales indicators for May sparkled on Friday, boosting the Canadian dollar 1.0 percent. jumped 1.4%, after failing to post a gain for three straight months. This easily beat the forecast of 0.6%. rebounded 2.0%, above the forecast of 1.0%. This follows a decline of 1.2% in April. Consumer inflation remained pegged at 0.1%, matching the forecast.
The U.S. dollar was broadly lower on Friday, after U.S. President Donald Trump made comments critical of Federal Reserve monetary policy. U.S. presidents traditionally do not comment on moves by the Fed, but that did not prevent Trump from tweeting on Thursday that “tightening now hurts all that we have done.” On the weekend, Treasury Secretary Steven Mnuchin engaged in damage control, saying at the G20 meeting that Trump was not interfering with the Fed policy of gradually raising rates. However, investors weren’t buying Mnuchin’s apologetics, and the U.S. dollar continued to lose ground in Monday’s Asian session. There was more for investors to fret over, as Trump also attacked the EU and China for manipulating their currencies and keeping interest rates lower. This has raised concerns that the current global trade war could be followed by a currency war.
Monday (July 23)
- 8:30 Canadian Wholesales Sales. Estimate 0.6%. Actual 1.4%
- 10:00 US Existing Home Sales. Estimate 5.46M
*All release times are DST
*Key events are in bold
USD/CAD for Monday, July 23, 2018
USD/CAD for July 22-24, 2018.
USD/CAD, July 23 at 7:55 DST
Open: 1.3141 High: 1.3156 Low: 1.3114 Close: 1.3138
In the Asian session, USD/CAD ticked lower but then gave up these gains. The pair has showed limited movement in European trade
- 1.3067 is providing support
- 1.3160 is under pressure in resistance
- Current range: 1.3067 to 1.3160
Further levels in both directions:
- Below: 1.3067, 1.2970 and 1.2831
- Above: 1.3160, 1.3292, 1.3436 and 1.3530
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.