USD/CAD: Canadian Dollar Steady | CA

The Canadian dollar continues to trade quietly. In the Thursday session, is trading at 1.2905, down 0.14% on the day. On the release front, Canada releases the monthly report and the . There are a host of key indicators in the U.S., led by and . The markets are expecting unemployment claims to tick higher to 230,000, while is forecast to rise to 131.2 points.

The U.S. economy continues to show strong expansion. Revised GDP for the third quarter came in at 2.9%, beating the estimate of 2.7%. This reading was revised upwards from the initial GDP estimate of 2.5%. Fourth quarter growth, although solid, could not keep up with a superb third quarter, which posted a gain of 3.2%. As for 2018, first quarter growth is expected to soften to 1.8%, but there is still a strong chance that the economy could hit 3% growth this year, as promised by U.S. President Donald Trump. The catalysts for such a rosy prediction are the massive tax cut and higher government spending. Where does this leave the Federal Reserve, which raised interest rates last week? Currently, the Fed is projecting to more rate hikes this year, but if the economy remains strong and inflation levels move closer to the Fed target of 2%, we could see four rate increases in 2018.

Negotiations over the NAFTA agreement continue, and positive statements from U.S. negotiators have raised hopes that a new agreement will be reached between Canada, Mexico and the U.S. A key sticking point has been a U.S. demand to increase the U.S. content in vehicles made in NAFTA members, but the Trump administration has apparently backed down on this requirement. The gloomy air around the talks has improved, and there is cautious optimism that the sides can hammer out a new agreement in the next few weeks.

USD/CAD Fundamentals

Thursday (March 29)

  • 8:30 Canadian GDP. Estimate 0.1%
  • 8:30 Canadian RMPI. Estimate 2.8%
  • 8:30 Canadian IPPI. Estimate 0.4%
  • 8:30 Canadian RMPI. Estimate 2.8%
  • 8:30 US Core PCE Price Index. Estimate 0.2%
  • 8:30 US Personal Spending. Estimate 0.2%
  • 8:30 US Unemployment Claims Estimate 230K
  • 9:45 Chicago PMI. Estimate 62.1
  • 10:00 US Revised UoM Consumer Sentiment. Estimate 101.9
  • 10:00 US Revised UoM Consumer Sentiment. Estimate 101.9
  • 10:00 US Revised UoM Inflation Expectations
  • 10:30 US Storage. Estimate -75B

*All release times are GMT

*Key events are in bold

USD/CAD for Thursday, March 29, 2018

USD/CAD for March 28-30, 2018.

USD/CAD for March 28-30, 2018.

USD/CAD, March 29 at 7:45 EST

Open: 1.2924 High: 1.2931 Low: 1.2902 Close: 1.2905

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2687 1.2757 1.2850 1.2930 1.3050 1.3165

USD/CAD was flat in the Asian session. In European trade, the pair edged higher but then retracted

  • 1.2850 is providing support
  • 1.2930 is a weak resistance line
  • Current range: 1.2850 to 1.2930

Further levels in both directions:

  • Below: 1.2850, 1.2757 and 1.2687
  • Above: 1.2930, 1.3050, 1.3165 and 1.3260

OANDA’s Open Positions Ratio

USD/CAD ratio is showing limited movement this week. Currently, short positions have a majority (56%), indicative of USD/CAD continuing to move lower.

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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