Kenny Fisher | Jul 03, 2018 09:38
The Canadian dollar has recorded small gains on Tuesday, after starting the week with slight losses. Currently, USD/CAD is trading at 1.3160, down 0.21% on the day. On the release front, there are no key indicators on the schedule. Canada will release Manufacturing PMI. In the U.S., Factory Orders are expected to rebound to 0.1% in May, after a dismal decline of 0.8% in April.
With the first week in July marked by holidays in Canada and the U.S., we are unlikely to see much movement from USD/CAD until later in the week. That could change on Friday, as Canada will release key employment data. Investors are also keeping a watchful eye, as the Bank of Canada holds a key policy meeting on July 11. The bank has been dropping strong hints that a rate hike could be coming soon. Last week, BoC Governor Stephen Poloz had a hawkish message for the markets, noting that inflation was on target and the domestic economy was performing well. However, Poloz also mentioned that the trade war between Canada and the U.S. was hurting business investment.With the U.S. showing no signs of easing its tariffs with major trading partners, including Canada, the BoC may decide to sit on fence and wait for trade tensions to ease before raising interest rates. A strong showing from Canadian job numbers on Friday could sway the bank to press the rate trigger next week.
USD/CAD Fundamentals
Tuesday (July 3)
*All release times are DST
*Key events are in bold
USD/CAD for Tuesday, July 3, 2018
USD/CAD, July 3 at 9:05 DST
Open: 1.3188 High: 1.3208 Low: 1.3133 Close: 1.3151
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 | 1.3436 |
USD/CAD was flat in the Asian session and has posted slight losses in European trade
Further levels in both directions:
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