The Canadian dollar continues to have an uneventful week, as USD/CAD trades in the mid-1.08 range early in the North American session. There was good news out of the US on Tuesday, as consumer confidence and housing data beat estimates. There are no releases out of the US or Canada on Wednesday.
The week started on a bright note for Canadian releases, as Corporate Profits jumped 7.4% in Q1, its strongest gain since Q4 of 2011. Meanwhile, Canadian inflation numbers continue to hover at low levels, as CPI and Core CPI both softened in April. CPI dipped to 0.3%, a three-month low. However, this did match the estimate. Core CPI, a key release, edged down to 0.2%, which also matched the estimate. Inflation is indicative of an underperforming economy, and there is little chance of the Bank of Canada increasing rates without higher inflation levels.
US Core Durable Goods Orders, the primary gauge of manufacturing activity, disappointed in April. The indicator slumped to just 0.1%, missing the estimate of 0.2%. This compared to a strong gain of 2.0% last month. Durable Goods Orders dropped to 0.8%, but did beat the estimate of -0.5%.
USD/CAD May 28 at 14:40 GMT
USD/CAD 1.0862 H: 1.0868 L: 1.0844
- On the downside, there is strong pressure on 1.0852. Will the pair break below this line? There is stronger support at 1.0775.
- 1.0906 is the next resistance line. The key line of 1.1000 is stronger.
- Current range: 1.0852 to 1.0906
Further levels in both directions:
- Below: 1.0852, 1.0775, 1.0706, 1.0678
- Above: 1.0906, 1.10, 1.1094, 1.1177 and 1.1319
OANDA’s Open Positions Ratio
USD/CAD ratio is almost unchanged in Wednesday trading. This is consistent with what the lack of movement we’ve seen all week from the pair. The ratio has a majority of long positions, indicative of trader bias in favor of the US dollar breaking out and posting gains.
USD/CAD is showing little activity on Wednesday. The Canadian dollar is unchanged in the North American session.
- There are no Canadian or US releases on Wednesday.
*Key releases are highlighted in bold
*All release times are GMT