USD/CAD – Stable as Wholesale Sales Matches Expectations

The Canadian dollar is steady on Monday, as USD/CAD trades in the mid-1.12 range in the North American session. On the release front, Canadian Wholesale Sales posted a slight gain of 0.2%. It’s a quiet day in the US, with no data releases on Monday.

Canada posted key data on Monday, with Wholesale Sales posting a gain of 0.2%, matching the forecast. The indicator bounced back from a decline of 0.3% in the previous release. Meanwhile, inflation levels remain very low. On Friday, Core CPI softened to 0.2%, down from 0.5% a month earlier. The estimate stood at 0.1%. CPI posted a weak gain of 0.1%, edging above the estimate of 0.0%.

US releases wrapped up the week on a high note, as UoM Consumer Sentiment climbed to 86.4 points, its highest reading since July 2007. The markets had expected a reading of 84.3 points. This indicates that the US consumer remains optimistic about the economy and is not overly concerned about warnings of a global slowdown. On the housing front, Building Permits and Housing Starts met expectations. Strong US employment numbers continue to drive the US recovery, as US job claims dropped to 264 thousand, marking a 14-year low. The estimate stood at 286 thousand.

 

USD/CAD for Monday, October 20, 2014

USD/CAD October 20 at 14:05 GMT

USD/CAD 1.1262 H: 1.1291 L: 1.1252

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0961 1.1004 1.1124 1.1278 1.1414 1.1493

 

  • USD/CAD pushed past resistance at 1.1278 early in the Asian session but then retracted. The pair is steady in European trading.
  • 1.1124 continues to provide strong support.
  • 1.1278 was breached earlier but recovered. It remains a weak resistance line. 1.1414 is stronger.
  • Current range: 1.1124 to 1.1278

Further levels in both directions:

  • Below: 1.1124, 1.1004, 1.0961 and 1.0865
  • Above: 1.1278, 1.1414, 1.1493 and 1.1669

 

OANDA’s Open Positions Ratio

USD/CAD ratio has posted gains in short positions on Monday. This is consistent with the pair’s movement, as the Canadian dollar has posted gains. The ratio has a majority of short positions, indicating trader bias towards the Canadian dollar gaining ground.

 

USD/CAD Fundamentals

  • 12:30 Canadian Wholesale Sales. Estimate 0.2%. Actual 0.2%.
  • 14:00 US FOMC Member Jerome Powell Speaks.

* Key releases are in highlighted bold.

*All release times are GMT

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.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.