USD/CAD: Canadian Dollar Steady, Wholesale Sales Ahead

 | Nov 20, 2017 11:27

The Canadian dollar has edged lower in the Monday session. Currently, USD/CAD is trading at 1.2788, up 0.15% on the day. On the release front, the sole indicator is U.S. CB Leading Index, with an estimate of 0.6%. On Tuesday, Canada releases Wholesale Sales and the U.S. publishes Existing Home Sales. As well, U.S. Federal Reserve Chair Janet Yellen will speak at an event in New York City.

Like its southern neighbor, Canada continues to grapple with low inflation levels. There were no surprises on Friday, as CPI posted a negligible gain of 0.1% for October, matching the estimate. The Bank of Canada remains cautiously optimistic about inflation – on Wednesday, Senior Deputy Governor Carolyn Wilkins said she expected wages to rise as the economy improved. Inflation levels remain well below the bank’s inflation target of 2.0%, and the markets don’t expect another rate hike until 2018.

U.S. housing numbers ended the week on a positive note, easily beating expectations. Building Permits for single-family homes jumped to 1.30 million, above the estimate of 1.25 million. The annualized pace of 839,000 building permits in October was the fastest since September 2007. Housing Starts also sparkled, accelerating to 1.29 million, compared to an estimate of 1.19 million. The catalyst for the strong numbers were hurricanes Harvey and Irma, which caused massive damage in the southern part of the U.S. With rebuilding efforts well underway, construction numbers should remain strong in the fourth quarter.

USD/CAD Fundamentals

Monday (Nov. 20)

  • 10:00 U.S. CB Leading Index. Estimate 0.6%

Tuesday (Nov. 21)

  • 8:30 Canadian Wholesale Sales. Estimate 0.6%
  • 10:00 U.S. Existing Home Sales. Estimate 5.42M
  • 18:00 U.S. Federal Reserve Chair Janet Yellen Speaks

*All release times are GMT

*Key events are in bold

USD/CAD for Monday, Nov. 20, 2017