USD/CAD: Canadian Dollar Trading Sideways

The Canadian dollar has edged lower in the Monday session. Currently, is trading at 1.3098, down 0.08% on the day. On the release front, there are no Canadian indicators. In the U.S., I is expected to drop to 59.3 points. On Tuesday, the U.S. will release and all eyes will be on the U.S. mid-term congressional elections. Canada will release .

Canadian employment data was solid in October. The economy added 11,200 jobs in October, but this was shy of the estimate 12,700. The unemployment rate ticked lower to 5.8%, a shade better than the forecast of 5.9%. These numbers will likely increase the likelihood of a rate hike from the Bank of Canada in early December. The economy is doing well and the BoC is also mindful that the Federal Reserve is expected to raise rates again in December, which would mark a fourth rate hike in 2018. Policy-makers do not want to see divergence widen between U.S. and Canadian rates, and another rate hike from the BoC would be bullish for the Canadian dollar.

The U.S. economy continues to perform well, a fact that will be hammered home by President Donald Trump and the Republicans in the few hours left until Election Day on Tuesday. The labor market is at or beyond capacity, and non-farm payrolls surged to 250,000, crushing the estimate of 194,000. Wage growth has also strengthened, with strong gains of 3.1% in the past year. Despite these strong numbers, the dollar failed to make headway on Friday, as reports that 0Trump will present his Chinese counterpart with a trade deal proposal increased risk appetite and weighed on the greenback.

USD/CAD Fundamentals

  • 9:30 Canadian Building Permits. Estimate 0.3%
  • 10:00 US JOLTS Job Openings
  • All Day – US Congressional Elections

*All release times are EST

*Key events are in bold

USD/CAD for Monday, November 5, 2018

USD/CAD for Nov. 4-5, 2018.

USD/CAD for Nov. 4-5, 2018.

USD/CAD, November 5 at 8:20 DST

Open: 1.3109 High: 1.3113 Low: 1.3091 Close: 1.3098

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3099 1.3198 1.3292

USD/CAD showed little movement in the Asian session. This pair has ticked lower in European trade

  • 1.2970 is providing support
  • 1.3099 is fluid. Currently, it is a weak resistance line.
  • Current range: 1.2970 to 1.3099

Further levels in both directions:

  • Below: 1.2970, 1.2831 and 1.2733
  • Above: 1.3099, 1.3198, 1.3292 and 1.3383

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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