- MarketPulse - https://www.marketpulse.com -

USD/CAD – Limited Movement in Thin Trade

USD/CAD is showing little movement as we begin the new trading week. Early in the North American session, the pair is trading in the high-1.04 range. We can expect thin trading on Monday, as both the US and Canadian markets are closed for holidays. On Friday, US Non-Farm Payrolls surged, pushing the pair higher. However, US Preliminary U0M Consumer Sentiment was a disappointment, slipping to an eight-month low. In Canada, employment data was strong, as Employment Change beat market expectations.

Over in the US, the markets had very low expectations from Non-Farm Payrolls, one of the most important economic indicators. The estimate for the October release stood at just 121 thousand, as there was concern that the reading would be artificially low due to the government shutdown in October. However, the indicator put those concerns to rest, as the indicator soared to 204 thousand, its highest level in eight months. The outstanding NFP figure bolstered the US dollar against the major currencies, and has increased speculation that the Fed might press the tapering trigger in December. Such talk could bolster the US currency, as a reduction in QE is bullish for the dollar. At the same time, speculation about a scaling down in QE introduces some uncertainty and volatility in the currency markets.

Canada wrapped up the week with strong employment data. Employment Change posted a respectable gain of 13.2 thousand, beating the estimate of 12.7 thousand. The Unemployment Rate remained unchanged at 6.9%, edging out the estimate of 7.0%. The solid numbers enabled the loonie to hold its own against the US dollar, which showed broad strength following a superb Non-Farm Payroll release on Friday. If the US continues to post good numbers this week, the Canadian dollar will have a hard time making inroads against the strong US dollar.

 

USD/CAD for Monday, November 11, 2013

Forex Rate Graph 21/1/13

USD/CAD November 11 at 15:30 GMT

USD/CAD 1.0466 H: 1.0487 L: 1.0466

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0282 1.0337 1.0442 1.0502 1.0573 1.0652

 

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions in Monday trading. This is not reflected in the current movement of the pair, which is showing very little movement. A majority of the open positions in the USD/CAD ratio are short, indicating a trader bias towards the Canadian dollar moving higher.

The pair has started the week with little movement and we can expect an uneventful North American session, with the US and Canadian markets off for a holiday on Monday.

 

USD/CAD Fundamentals

 

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 [4]

Currency Analyst at Market Pulse [5]
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.
Kenny Fisher

Latest posts by Kenny Fisher (see all [4])