USD/CAD: Shutdown Deal Boost Canadian Dollar To Two-Week High

is showing little movement in the Monday session. Currently, the pair is trading at 1.3234, up 0.10% on the day. On the release front, there are no Canadian or U.S. events on the schedule, so we can expect a quiet day from the pair. On Tuesday, the U.S. releases , which is expected to drop to 125.0 points.

The Canadian dollar received an unexpected boost on Friday, courtesy of Donald Trump. The U.S. president signed a bill that provided funds for the U.S. government to operate for three weeks. The breakthrough has raised hopes that an agreement can be reached to end the shutdown, which has lasted over a month. Risk sentiment jumped on the news of a deal, and the Canadian dollar surged more than 1.0% on Friday, hitting a two-week high.

At the same time, last week’s soft Canadian data is a cause for concern. declined by 1.4% in November, its sharpest decline in over a year. Consumer spending also sagged in November. and both recorded declines, with readings of -0.9% and -0.3%, respectively. The economy will receive a report card on Thursday, with the release of the monthly . This key event should be treated as a market-mover.

USD/CAD Fundamentals

Tuesday (January 29)

  • 10:00 US CB Consumer Confidence. Estimate 125.0

*All release times are EST

*Key events are in bold

USD/CAD for Monday, January 28, 2019

USD/CAD for Jan. 27-29, 2019.

USD/CAD for Jan. 27-29, 2019.

USD/CAD, January 28 at 7:45 EST

Open: 1.3218 High: 1.3234 Low: 1.3204 Close: 1.3234

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3049 1.3125 1.3200 1.3290 1.3383 1.3445

USD/CAD ticked lower in the Asian session but has recovered in European trade

  • 1.3200 is providing support
  • 1.3290 is the next resistance line
  • Current range: 1.3200 to 1.3290

Further levels in both directions:

  • Below: 1.3200, 1.3125 and 1.3049
  • Above: 1.3290, 1.3383, 1.3445 and 1.3552

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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