USD/CAD: Shutdown Deal Boost Canadian Dollar To Two-Week High
Kenny Fisher | Jan 28, 2019 12:11
USD/CAD is showing little movement in the Monday session. Currently, the pair is trading at 1.3234, up 0.10% on the day. On the release front, there are no Canadian or U.S. events on the schedule, so we can expect a quiet day from the pair. On Tuesday, the U.S. releases CB Consumer Confidence, which is expected to drop to 125.0 points.
The Canadian dollar received an unexpected boost on Friday, courtesy of Donald Trump. The U.S. president signed a bill that provided funds for the U.S. government to operate for three weeks. The breakthrough has raised hopes that an agreement can be reached to end the shutdown, which has lasted over a month. Risk sentiment jumped on the news of a deal, and the Canadian dollar surged more than 1.0% on Friday, hitting a two-week high.
At the same time, last week’s soft Canadian data is a cause for concern. Manufacturing Sales declined by 1.4% in November, its sharpest decline in over a year. Consumer spending also sagged in November. Retail Sales and Core Retail Sales both recorded declines, with readings of -0.9% and -0.3%, respectively. The economy will receive a report card on Thursday, with the release of the monthly GDP report. This key event should be treated as a market-mover.
USD/CAD Fundamentals
Tuesday (January 29)
- 10:00 US CB Consumer Confidence. Estimate 125.0
*All release times are EST
*Key events are in bold
USD/CAD for Monday, January 28, 2019
USD/CAD, January 28 at 7:45 EST
Open: 1.3218 High: 1.3234 Low: 1.3204 Close: 1.3234
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3049 | 1.3125 | 1.3200 | 1.3290 | 1.3383 | 1.3445 |
USD/CAD ticked lower in the Asian session but has recovered in European trade
- 1.3200 is providing support
- 1.3290 is the next resistance line
- Current range: 1.3200 to 1.3290
Further levels in both directions:
- Below: 1.3200, 1.3125 and 1.3049
- Above: 1.3290, 1.3383, 1.3445 and 1.3552
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