Kenny Fisher | Feb 21, 2018 09:47
The Canadian dollar has recorded slight losses in the Tuesday session. Currently, USD/CAD is trading at 1.2669, up 0.16% on the day. On the release front, there are no Canadian releases on the schedule. In the U.S., the key event is the Federal Reserve minutes from the January meeting. We’ll also get a look at Existing Home Sales, which are expected to climb to 5.61 million. On Thursday, Canada releases retail sales reports and the U.S. will publish unemployment claims.
The week started on a sour note for Canadian indicators, as Wholesale Sales declined 0.5%, short of the estimate of 0.4%. It marked the first decline in three months. The markets are expecting another soft release from Core Retail Sales, a key barometer of consumer spending. The indicator posted a strong gain of 1.6% in December, but is forecast to slow to just 0.1% in January. If consumer spending posts a weak reading, the Canadian dollar could lose more ground. The pair is under pressure, and has shed 1.0% so far this month.
It has been an eventful few weeks for Jerome Powell, who has just commenced his stint as chair of the Federal Reserve. Strong U.S. data in recent weeks has raised speculation that the Fed may need to accelerate the pace of interest rate hikes in 2018. The Fed is currently projecting three rate hikes this year, but if inflation continues to move upwards, many analysts are expecting that the Fed could press the rate trigger four, or even five times in 2018. Meanwhile, concern over higher inflation and more rate hikes sent the stock markets into a frenzy earlier in February. Powell sought to reassure the markets that the Fed was monitoring the situation, but it’s doubtful that the Fed can do much to prevent volatility in the markets.
USD/CAD Fundamentals
Wednesday (Feb. 21)
Thursday (Feb. 22)
*All release times are GMT
*Key events are in bold
USD/CAD for Wednesday, Feb. 21, 2018
USD/CAD, Feb. 21 at 7:40 EST
Open: 1.2548 High: 1.2671 Low: 1.2640 Close: 1.2669
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2351 | 1.2494 | 1.2630 | 1.2757 | 1.2855 | 1.2920 |
USD/CAD has posted small gains in the Asian and European sessions
Further levels in both directions:
OANDA’s Open Positions Ratio
USD/CAD ratio is showing little movement in the Wednesday session. Currently, short positions have a slender majority (52%), indicative of slight trader bias towards USD/CAD reversing directions and moving lower.
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