USD/CAD: Loonie Steady; U.S. PPI Higher Than Expected
Kenny Fisher | Nov 14, 2017 11:22
The Canadian dollar has edged higher in the Tuesday session. In the North American session, USD/CAD is trading at 1.2713, down 0.16% on the day. On the release front, there are no Canadian indicators on the schedule. Central bankers will attend an ECB event in Frankfurt, with Fed Chair Janet Yellen participating in a panel discussion. The U.S. PPI reports are expected to show very small gains. Wednesday promises to be busy, with the U.S. releasing CPI and retail sales reports.
U.S. President Donald Trump is wrapping up his tour of Asian Pacific countries, and he reiterated his message of “America first.” This protectionist stance could signal trouble for Canada and Mexico, as Trump has vowed to renegotiate the NAFTA free trade agreement. On his Asian trip, Trump reiterated that he favors bilateral trade agreements rather than multilateral arrangements. Negotiators from the three countries are meeting for another round of talks on Wednesday, and by all accounts, the talks are progressing slowly. NAFTA covers more than $1 trillion a year in trade, and if the agreement is not renegotiated, the Canadian economy will be adversely affected, and the Canadian dollar would likely lose ground against the greenback.
Investors are keeping a close eye on developments with Trump’s tax proposal. There are some differences in the House and Senate bills, with some Republicans opposed to eliminating federal deductions of state and local taxes. The Republicans hope to present Trump with a new tax code by the end of the year, but with Democrats putting up fierce resistance, it’s unclear whether the bill will have enough votes to get through Congress. If the proposal is successful, the resulting economic growth could lead to higher interest rates, which would likely boost the U.S. dollar against other currencies.
USD/CAD Fundamentals
Tuesday (Nov 14)
- 5:00 U.S. Federal Chair Janet Yellen Speaks
- 8:30 U.S. PPI. Estimate 0.1%
- 8:30 U.S. Core PPI. Estimate 0.2%
Wednesday (Nov. 15)
- 8:30 U.S. CPI. Estimate 0.1%
- 8:30 U.S. Core CPI. Estimate 0.2%
- 8:30 U.S. Retail Sales. Estimate 0.2%
- 8:30 U.S. Core Retail Sales. Estimate 0.0%
- 8:30 U.S. Empire State Manufacturing Index. Estimate 25.3
*All release times are GMT
*Key events are in bold
USD/CAD for Tuesday, Nov. 14, 2017
Get The App
USD/CAD, Nov. 14 at 7:50 EDT
Open: 1.2733 High: 1.2758 Low: 1.2725 Close: 1.2716
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2441 | 1.2598 | 1.2701 | 1.2778 | 1.2943 | 1.3032 |
USD/CAD was flat in the Asian session and has edged lower in European trade
- 1.2701 remains a weak line
- 1.2778 is the next line of resistance
- Current range: 1.2701 to 1.2778
Further levels in both directions:
- Below: 1.2701, 1.2598, 1.2441 and 1.2357
- Above: 1.2778, 1.2943 and 1.3032
OANDA’s Open Positions Ratio
USD/CAD ratio is unchanged in the Tuesday session. Currently, long positions have a majority (57%), indicative of trader bias towards USD/CAD continuing to move higher.
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.