Kenny Fisher | Apr 15, 2019 09:33
USD/CAD is slightly lower at the start of the week. Currently, the pair is trading at 1.3302, down 0.18% on the day. In the U.S., the Empire State Manufacturing Index improved to 10.1, beating the estimate of 8.1 points. Later in the day, Canada releases the BoC Business Outlook Survey. This indicator provides a snapshot of business sentiment, and should be treated as a market-mover. On Tuesday, Canada releases manufacturing sales, which is expected to decline by 0.1% in February, after a strong gain of 1.0% in January.
The Bank of Canada remains in dovish mode and may freeze rate hikes until 2020. The lack of activity from the BoC could weigh on the Canadian dollar, as the prospect of higher rates would make the Canadian currency more attractive to investors. Last week, the IMF downgraded economic forecasts worldwide, and Canada was no exception. The IMF lowered its forecast for the Canadian growth from 1.9% to 1.5%. The report noted that Canada would be a major beneficiary if the U.S. and China can hammer out a deal and end their bruising trade war. The IMF also lowered its forecast for global growth, from 3.5% to 3.3%.
There was positive news on the U.S. inflation front last week, as key indicators headed higher in March. CPI, the key gauge of consumer spending, climbed to 0.4%, its highest gain since January 2018. The producer price index also looked strong, climbing 0.6%, a 5-month high. Inflation remains well below the Federal Reserve target of 2.0%, but stronger inflation numbers will bolster the case of Fed officials who favor raising rates in 2019 if the economic outlook improves. The Fed minutes from the March meeting left the door open to further rate hikes this year, but current market pricing suggests no hikes until 2020, and some analysts are expecting a cut in rates later this year.
USD/CAD Fundamentals
Monday (April 15)
Tuesday (April 16)
*All release times are DST
*Key events are in bold
USD/CAD for Monday, April 15, 2019
USD/CAD, April 15 at 8:15 DST
Open: 1.3326 High: 1.3341 Low: 1.3300 Close: 1.3302
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.3125 | 1.3200 | 1.3290 | 1.3383 | 1.3445 | 1.3552 |
USD/CAD was flat for most of the Asian session. In European trade, the pair posted small gains but then retracted
Further levels in both directions:
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.