USD/CAD: Canadian Dollar Slips to 4-Week Low
Kenny Fisher | Nov 30, 2017 10:46
The Canadian dollar continues to lose ground in the Thursday session. Currently, USD/CAD is trading at 1.2890, up 0.20% on the day. The Canadian dollar has suffered a rough week, declining 1.4 percent. Currently, the currency is at its lowest level against the greenback since Nov. 1. On the release front, Canada’s current account deficit is expected to rise to CAD $20.0 billion. The U.S. releases unemployment claims and Personal Spending. On Friday, the U.S. releases ISM Manufacturing PMI.
The U.S. economy continues to perform well, and there was more good news on Wednesday, as Preliminary GDP for the third quarter posted a sharp gain of 3.3%. This was higher than the initial estimate of 3.0% and marked the fastest growth rate since Q3 of 2014. This was particularly impressive, as the southern U.S. was battered by major hurricanes that caused significant economic damage. Consumer confidence levels are sky-high, but consumer consumption softened in the third quarter. However, business spending improved in the third quarter. Federal Reserve Chair Janet Yellen sounded upbeat about the economy, saying that the expansion was broad-based, across sectors of the economy.
Canadian inflation indicators pointed upwards Tuesday, but the Canadian dollar couldn’t take advantage and lost more ground against the U.S. currency. The Raw Materials Price Index jumped 3.8% in October, rebounding after a decline of 0.1% a month earlier. This marked the indicator’s strongest gain in 2017. The Industrial Product Price Index also rebounded after a decline, posting a gain of 1.0%. Elsewhere, Bank of Canada Governor Stephen Poloz sounded upbeat about the stability of the financial system, noting that the labor market was strong and higher interest rates had helped cool the housing market frenzy.
USD/CAD Fundamentals
Thursday (Nov. 30)
- 8:30 Canadian Current Account. Estimate -20.0B
- 8:30 U.S. Unemployment Claims. Estimate 241K
- 8:30 U.S. Core PCE Price Index. Estimate 0.2%
- 8:30 U.S. Personal Spending. Estimate 0.2%
- 9:45 U.S. Chicago PMI. Estimate 62.2
- 10:30 U.S. Natural Gas Storage. Estimate -37B
- 12:30 U.S. FOMC Member Randal Quarles Speaks
- 13:00 U.S. FOMC Member Robert Kaplan Speaks
Friday (Dec. 1)
- 8:30 Canadian Employment Change
- 8:30 Canadian GDP
- 8:30 Canadian Unemployment Rate
- 10:00 U.S. ISM Manufacturing PMI. Estimate 58.4
*All release times are GMT
*Key events are in bold
USD/CAD for Thursday, Nov. 30, 2017
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USD/CAD, Nov. 30 at 7:55 EDT
Open: 1.2865 High: 1.2902 Low: 1.2857 Close: 1.2890
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2630 | 1.2757 | 1.2860 | 1.3015 | 1.3165 | 1.3268 |
USD/CAD was flat in the Asian session. In European trade, the pair edged higher but retracted
- 1.2757 is providing support
- 1.2860 is the next resistance line
- Current range: 1.2757 to 1.2860
Further levels in both directions:
- Below: 1.2860, 1.2757 and 1.2630
- Above: 1.3015, 1.3165 and 1.3268
OANDA’s Open Positions Ratio
USD/CAD ratio is almost unchanged in the Thursday session. Currently, long positions have a slight majority (52%), indicative of slight trader bias towards USD/CAD continuing to move higher.
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