USD/CAD

USD/CAD showed little movement in the Asian session. The pair recorded slight gains but then retracted in European trade

• 1.2757 is providing support
• 1.2850 was tested earlier in resistance. It is a weak line
• Current range: 1.2757 to 1.2850

Further levels in both directions:

• Below: 1.2757, 1.2687 and 1.2590
• Above: 1.2850, 1.2943, 1.3015 and 1.3125
• 
  USD/CAD ratio is showing little movement in the Thursday session. Currently, short positions have a majority (53%), indicative of slight trader bias towards USD/CAD takes next.

Canadian dollar has recorded slight losses

Canadian dollar has recorded slight losses in the Tuesday session. Currently, USD/CAD is trading at 1.2606, up 0.37% on the day. On the release front, it’s a very light day. There are no US releases on the schedule. The sole Canadian indicator, Wholesale Sales, is expected to slow to 0.4%. On Wednesday, the Federal Reserve will release the minutes of its January meeting. As well, the US will release Existing Home Sales.
It’s been an eventful few weeks for Jerome Powell, who has just commenced his stint as chair of the Federal Reserve. Strong US 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 has posted small gains in the Asian and European sessions
•1.2494 is providing support
•1.2630 is a weak resistance line
•Current range: 1.2494 to 1.2630
Further levels in both directions:
•Below: 1.2494, 1.2351, 1.2190 and 1.2060
•Above: 1.2630, 1.2757 and 1.2855
USD/CAD ratio is showing little movement in the Tuesday session. Currently, short and long positions are evenly split, indicative of a lack of trader bias as to which direction USD/CAD will take next.

Prices for foreign-made goods

Prices for foreign-made goods imported to the U.S. rose in January, driven by a broad range of product price increases and capping a week of solid inflation readings.
Import prices increased 1% in January from a month earlier, the Labor Department said Friday. Economists surveyed by The Wall Street Journal expected a 0.7% increase in import prices. The January rise matched November's increase and hasn't been exceeded since May 2016, when the index grew 1.2%.
Unlike most measures of inflation, import prices are not adjusted for seasonality.
Petroleum-import prices rose 4.3% from December. Prices for imports excluding petroleum increased 0.5% last month, an increase last exceeded in April 2011.
Over the past year, overall import prices have grown 3.6%.

USD/CAD ticked lower

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.
 

USD/CAD ratio

The Canadian dollar continues to have an uneventful week. In the Tuesday’s session, the pair is trading at 1.2587, up 0.07% on the day. On the release front, there are no Canadian indicators on the schedule. In the US, the sole indicator is the NFIB Small Business Index, which improved to 106.9, above the estimate of 106.2 points. On Wednesday the US releases CPI and retail sales indicators. Traders should be prepared for movement from USD/CAD during the North American session.
Last week’s market selloff boosted the US dollar, at the expense of the Canadian dollar and most other major currencies. The Canadian dollar dropped 1.2% last week, and is down 2.2% in February, erasing the gains we saw in January. Interestingly, the catalyst for the current turbulence has been solid economic data in the US, namely, improved payrolls and wage growth reports. Is the correction over? It’s too early too tell, since much of the sell-off is related to investor concerns over possible interest rate hikes by major central banks. The Bank of England has said it could accelerate its pace of hikes, and the Federal Reserve could follow suit if inflation moves higher.
USD/CAD ratio is almost unchanged in the Tuesday session. Currently, long and short positions are evenly split, indicative of a lack of trader bias towards as to what direction USD/CAD takes next.USD/CAD was flat in the Asian session and has posted limited movement in the European session
•1.2494 is providing support
•1.2630 is providing resistance
•Current range: 1.2494 to 1.2630
Further levels in both directions:
•Below: 1.2494, 1.2351, 1.2190 and 1.2060
•Above: 1.2630, 1.2757 and 1.2855