Canadian Dollar Edges Higher
Kenny Fisher | Sep 28, 2018 09:36
The Canadian dollar has slight gains on Friday, erasing the losses seen on Thursday. Currently, USD/CAD is trading at 1.3018, down 0.18% on the day. On the release front, Canada published GDP. In the U.S., the focus is on consumer reports. Personal Spending is expected to edge lower to 0.3%, while UoM Consumer Sentiment is expected to climb to 100.5 points. The indicator last broke through the symbolic 100 level in March. As well, the U.S. releases Core PCE Price Index, the preferred inflation indicator of the Federal Reserve, with an estimate of 0.3%.
The next rate meeting for the Bank of Canada is not until late October, but the bank is already under strong pressure to raise rates. The Federal Reserve raised rates on Wednesday and another rate hike is expected in December, which would be the fourth hike in 2018. On Thursday, BoC head Stephen Poloz said that the bank will continue to raise rates gradually and that a key priority for the BoC would be preventing inflation from gaining momentum. The BoC has raised rates some four times since July 2017, but has shown some hesitancy to raise rates due to trade war tensions, as Canadian and U.S. negotiators have yet to agree on a new NAFTA accord.
As widely expected, the Federal Reserve pressed that rate trigger for the third time this year, raising the benchmark rate by a quarter-point, to a range of 2 percent to 2.25 percent. The Fed intends to continue gradually raising rates, with another rate hike expected in December and three hikes in 2019. What was of more interest to investors was the rate statement, in which the Fed removed the word ‘accommodative’ in the statement, which means that the Fed now considers monetary policy to be neutral. Fed Chair Jerome Powell, in a bid to keep markets calm, stated in a follow-up press conference that removing accommodative language in the statement did not reflect a change in policy. Still, the markets were upbeat after the Fed meeting and the U.S. dollar has responded with gains against the Canadian dollar on Thursday.
Still picking up the FOMC pieces and tying up a few loose ends
USD/CAD Fundamentals
Friday (September 28)
- 8:30 Canadian GDP. Estimate 0.1%
- 8:30 Canadian RMPI. Estimate 0.8%
- 8:30 Canadian IPPI. Estimate 0.6%
- 8:30 US Personal Spending. Estimate 0.3%
- 8:30 US Core PCE Price Index. Estimate 0.1%
- 8:30 US Personal Income. Estimate 0.4%
- 9:45 US Chicago PMI. Estimate 62.3
- 10:00 US Revised UoM Consumer Sentiment. Estimate 100.5
- 10:00 US Revised UoM Inflation Expectations
*All release times are DST
Get The App
*Key events are in bold
USD/CAD for Friday, September 28, 2018
USD/CAD, September 28 at 7:50 DST
Open: 1.3042 High: 1.3050 Low: 1.3008 Close: 1.3018
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2733 | 12831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 |
USD/CAD has recorded small losses in the Asian and European sessions
- 1.2970 is a support level
- 1.3067 is the next resistance line
- Current range: 1.2970 to 1.3067
Further levels in both directions:
- Below: 1.2970, 1.2831 and 1.2733
- Above: 1.3067, 1.3160, 1.3292 and 1.3436
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.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.