USD/CAD: Canadian Dollar Steady, U.S. Consumer Confidence Next
Kenny Fisher | Jun 26, 2018 09:31
The Canadian dollar continues to have a quiet week. In Tuesday’s North American session, USD/CAD is trading at 1.3319, up 0.19% on the day. On the release front, there are no Canadian events until Thursday, so U.S. indicators will have an added impact on the movement of USD/CAD. In the U.S., the key event is CB Consumer Confidence, which is expected to drop to 127.6 points. On Wednesday, the U.S releases durable goods reports.
The Bank of Canada has dropped hints that it is ready to raise rates in the second half of 2018, but policy-makers have concerns both internally and on the global stage. The escalating trade war between the U.S. and China could have serious repercussions for the Canadian economy. U.S. President Donald Trump hasn’t spared Canada from tariffs, and with 80% of Canadian exports headed to the U.S., Canada can ill-afford a trade spat with its giant southern neighbor. On the domestic front, Canadian consumer inflation and spending data was softer than expected. Retail Sales was dismal, with a sharp drop of 1.2 percent. Despite these soft numbers, the Bank of Canada remains confident about the economy, and a July rate hike remains a reasonable possibility. Inflation is still above the target of 2.0%, and in its May policy statement the BoC removed its reference to “cautious,” replacing it with “gradual” describing its approach to rate adjustments. The markets viewed this as a signal that the bank is preparing to press the rate trigger. A rate hike would likely boost the Canadian dollar, as it makes the currency more attractive to investors.
There is widespread concern among central bankers that recent protectionist moves could hamper global growth and financial stability. This was the message on Sunday from the Bank of International Settlements (BIS), which acts as an umbrella group for some 60 central banks. The BIS also warned that the escalating trade war could have negative side effects on the currency markets. At the same time, the BIS expressed support for the Federal Reserve raising interest rates gradually and for the ECB heading towards normalization as it winds up its massive asset program.
USD/CAD Fundamentals
Tuesday (June 26)
- 9:00 US S&P/CS Composite-20 HPI. Estimate 6.9%
- 10:00 US CB Consumer Confidence. Estimate 127.6
- 10:00 US Richmond Manufacturing Index. Estimate 15
- 13:00 US FOMC Member Rafael Bostic Speaks
Wednesday (June 27)
- 8:30 US Core Durable Goods Orders. Estimate 0.5%
- 8:30 US Durable Goods Orders. Estimate -0.9%
*All release times are DST
*Key events are in bold
Get The App
USD/CAD for Tuesday, June 26, 2018
USD/CAD, June 26 at 8:40 DST
Open: 1.3296 High: 1.3329 Low: 1.3281 Close: 1.3319
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3067 | 1.3160 | 1.3292 | 1.3436 | 1.3550 | 1.3637 |
USD/CAD was flat in the Asian session and has posted small gains in European trade
- 1.3292 remains a weak support line. It was tested earlier in the day
- 1.3436 is the next resistance line
- Current range: 1.3292 to 1.3436
Further levels in both directions:
- Below: 1.3292, 1.3160, 1.3067 and 1.2970
- Above: 1.3436, 1.3530 and 1.3637
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.