USD/CAD: Canadian Dollar Steady | CA

The Canadian dollar is showing little movement in the Thursday session. Currently, is trading at 1.3319, up 0.06% on the day. On the release front, there are employment releases on both sides of the border. Canada will publish and . In the U.S., is forecast to drop to 28.9 points. As well, unemployment claims are expected to edge up to 220,000.

With trade tensions making investors increasingly nervous, the Canadian dollar has hit some significant headwinds. USD/CAD has declined 3.0% since June 11 and continues to struggle at 12-month lows. Canada is particularly vulnerable to protectionist moves south of the border, as some 80% of Canadian exports go to the United States. With U.S. President Donald Trump making good on his threat to slap tariffs on his trading partners, the Canadian government is scrambling to protect the economy. Trump has said the U.S. could impose tariffs of 25 percent on Canadian-built vehicles, which would be disastrous for the Canadian automotive sector, which is worth about C$80 billion to the economy every year. The Trudeau government has promised to help sectors hit with U.S. tariffs, but bailing out the auto industry would cost billions. Canada may have to provide the U.S. with more concessions in the NAFTA negotiations, in order to stave off tariffs against Canadian vehicles, which could have a disastrous effect on economic growth.

USD/CAD Fundamentals

Thursday (June 21)

  • 8:30 Canadian ADP Nonfarm Employment Change
  • 8:30 Canadian Wholesale Sales. Estimate 0.4%
  • 8:30 US Philly Fed Manufacturing Index. Estimate 28.9
  • 8:30 US Unemployment Claims. Estimate 220K
  • 9:00 US HPI. Estimate 0.3%
  • 10:00 US CB Leading Index. Estimate 0.4%
  • 10:30 US Storage. Estimate 85B
  • Tentative – US Bank Stress Test Results

Friday (June 22)

  • All Day – OPEC Meetings
  • 8:30 Canadian CPI. Estimate 0.4%
  • 8:30 Canadian Retail Sales. Estimate 0.5%
  • 8:30 Canadian Core Retail Sales. Estimate 0.0%

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, June 21, 2018

USD/CAD for June 20-22, 2018.

USD/CAD for June 20-22, 2018.

USD/CAD, June 21 at 7:50 DST

Open: 1.3311 High: 1.3330 Low: 1.3294 Close: 1.3319

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3067 1.3160 1.3292 1.3436 1.3530 1.3637

USD/CAD ticked higher in the Asian session and has been choppy in European trade

  • 1.3292 is a weak support line
  • 1.3436 is the next resistance line
  • Current range: 1.3292 to 1.3436

Further levels in both directions:

  • Below: 1.3292, 1.3160, 1.3067 and 1.2970
  • Above: 1.3436, 1.3530 and 1.3637

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