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USD/CAD – Strong Greenback Pushes Above 1.06

The US dollar continues to push higher on Wednesday, as USD/CAD is trading close to the 1.06 line. The US dollar got a boost as Unemployment Claims dropped to its lowest levels in two months. However, Core Durable Goods Orders posted a decline and fell short of the estimate. There are no Canadian releases on Wednesday.

In the US, Unemployment Claims continues to look sharp, as the key indicator dropped to 316 thousand, its lowest level in two months. This figure easily beat the estimate of 331 thousand. However, the news was not as good from the manufacturing sector, as Core Durable Goods Orders posted a drop of 0.1% for the third month running. The key indicator has not posted a gain since May. Durable Goods was awful, posting a decline of 2.0%, well below the estimate of a 1.5% drop.

The Canadian dollar continues to struggle against its US counterpart. The currency is trading close to the 1.06 line on Wednesday, its highest level since early July. The surging US dollar has gained about 250 points in a little over a week, and we could see the rally continue.

Low inflation indicators have been a major concern in Canada, Japan and the Eurozone, and the US is not immune from this problem either. The Producer Price Index continues to look weak, posting a decline of 0.2% in October. This was the index’s second straight decline. Core CPI showed a weak gain of 0.1%, and CPI dipped to -0.1%. These weak numbers have raised concern about the health of the US economy.


USD/CAD for Wednesday, November 27, 2013

Forex Rate Graph 21/1/13

USD/CAD November 27 at 16:15 GMT

USD/CAD 1.0587 H: 1.0602 L: 1.0532


USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0442 1.0502 1.0573 1.0652 1.0837 1.0945



Further levels in both directions:


OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions in Wednesday trading. This is not reflected in the current movement of the pair, as the US dollar continues to rally. A majority of the open positions in the USD/CAD ratio are short, indicating a trader bias towards the Canadian dollar reversing its current slide and moving to higher ground.

The Canadian dollar remains under pressure in Wednesday trading, as the US dollar has climbed close to the 1.06 line. We could see the US dollar, which has strong momentum, continue to post gains during the North American session.


USD/CAD Fundamentals


*Key releases are highlighted in 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 [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

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