USD/CAD ticked lower in the Asian session. In European trade, the pair dropped slightly but has recovered
•1.2351 is providing support
•1.2494 was tested earlier in resistance and remains fluid
•Current range: 1.2351 to 1.2494
Further levels in both directions:
•Below: 1.2351, 1.2190 and 1.2060
•Above: 1.2494, 1.2630, 1.2757 and 1.2855
USD/CAD ratio is showing slight movement towards long positions. Currently, long positions have a majority (53%), indicative of trader bias towards USD/CAD breaking out and moving lower.The Canadian dollar has paused on Thursday, after posting strong gains a day earlier. Currently, USD/CAD is trading at 1.2491, down 0.01% on the day. On the release front, Canada releases ADP Non-farm Employment Change. In the US, there are a host of indicators, highlighted by PPI and Core PPI reports for January. Both indicators are expected to record gains after declining in the December readings. The US will also release key manufacturing reports and unemployment claims. On Friday, the US releases key housing and consumer confidence numbers. Canada will publish Manufacturing Sales.
It’s been a rough February for the Canadian dollar, but the currency jumped on the bandwagon on Wednesday, as the US dollar posted broad losses. The Canadian currency posted its best one-day performance in 2018, gaining 0.09% against the greenback. The US dollar sagged as investors focused on poor retail sales reports in January. Retail Sales was flat at 0.0%, short of the estimate of 0.5%. Core Retail Sales declined 0.3%, well off the forecast of +0.2%. On the inflation front, CPI jumped 0.5%, above the estimate of 0.3%. Last week’s market sell-off, which sent the US dollar higher against other currencies, was triggered by fears of higher inflation. This strong CPI reading has raised concerns that investors could again lose their risk appetite and send the Canadian dollar lower.
•1.2351 is providing support
•1.2494 was tested earlier in resistance and remains fluid
•Current range: 1.2351 to 1.2494
Further levels in both directions:
•Below: 1.2351, 1.2190 and 1.2060
•Above: 1.2494, 1.2630, 1.2757 and 1.2855
USD/CAD ratio is showing slight movement towards long positions. Currently, long positions have a majority (53%), indicative of trader bias towards USD/CAD breaking out and moving lower.The Canadian dollar has paused on Thursday, after posting strong gains a day earlier. Currently, USD/CAD is trading at 1.2491, down 0.01% on the day. On the release front, Canada releases ADP Non-farm Employment Change. In the US, there are a host of indicators, highlighted by PPI and Core PPI reports for January. Both indicators are expected to record gains after declining in the December readings. The US will also release key manufacturing reports and unemployment claims. On Friday, the US releases key housing and consumer confidence numbers. Canada will publish Manufacturing Sales.
It’s been a rough February for the Canadian dollar, but the currency jumped on the bandwagon on Wednesday, as the US dollar posted broad losses. The Canadian currency posted its best one-day performance in 2018, gaining 0.09% against the greenback. The US dollar sagged as investors focused on poor retail sales reports in January. Retail Sales was flat at 0.0%, short of the estimate of 0.5%. Core Retail Sales declined 0.3%, well off the forecast of +0.2%. On the inflation front, CPI jumped 0.5%, above the estimate of 0.3%. Last week’s market sell-off, which sent the US dollar higher against other currencies, was triggered by fears of higher inflation. This strong CPI reading has raised concerns that investors could again lose their risk appetite and send the Canadian dollar lower.
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