Kenny Fisher | Jul 30, 2018 10:54
The Canadian dollar is showing little movement in the Monday session. Currently, USD/CAD is trading at 1.3047, down 0.06% on the day. There are no Canadian indicators on the schedule. In the U.S., Pending Home Sales is forecast to rebound with a gain of 0.4%, after two straight declines. Tuesday will be busy on both sides of the border. The U.S. will publish consumer spending and inflation indicators, as well as CB Consumer Confidence. Canada will release GDP for the second quarter and the Raw Materials Price Index.
U.S. indicators ended the week on a bright note, but the Canadian dollar held its own on Friday against the strong U.S. currency. Advance GDP, the first of three GDP reports in the second quarter, posted a strong gain of 4.1%, just shy of the forecast of 4.2%. This was much stronger than the gain of 2.2% in Q1 and marked the strongest quarter of economic growth since 2014. As well, UoM Consumer Sentiment dipped lower to 97.9 but still beat the estimate of 97.1 points. President Donald Trump took credit for the strong GDP report and claimed that “these numbers are very, very sustainable.” However, analysts are being more cautious in their forecasts, calling for growth in the third quarter of around 2.5 percent.
Negotiations over NAFTA have progressed slowly, but policy-makers in Canada and Mexico are hopeful that the flexibility that the U.S. has shown towards the European Union will extend to NAFTA as well. Last week, Trump met with EU Commission President Jean-Claude Juncker and announced that the U.S. would hold off any further tariffs while the sides were negotiating. Will this goodwill extend to NAFTA as well? The U.S. has insisted on far-reaching changes to the pact, including its renegotiation in five years and higher U.S. content in automobiles produced in North America. If its demands aren’t met, the Trump administration has said it could pursue separate free-trade agreements with Canada and Mexico. However, the latter two countries would like to maintain a trilateral arrangement. If the parties do reach a new agreement, the Canadian dollar would likely move higher.
Tuesday (July 31)
*All release times are DST
*Key events are in bold
USD/CAD for Monday, July 30, 2018
USD/CAD, July 30 at 8:30 DST
Open: 1.3055 High: 1.3079 Low: 1.3039 Close: 1.3050
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2733 | 12831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 |
USD/CAD ticked higher in Asian trade and has retracted in the European session
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.