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USD/CAD – Almost Unchanged As US Markets On Holiday

We are seeing little movement on Thursday, as USD/CAD continues to trade close to the 1.06 line. In Canada, Current Account and the Raw Materials Price Index both missed their estimates. There are no US releases today, as the markets are closed for the Thanksgiving holiday.

While the US took time off to celebrate Thanksgiving Thursday, there was little holiday cheer north of the border, as Canadian releases were sluggish. Current Account, which is closely linked to currency demand, showed the deficit widening to -C$15.5 billion, up from -C$14.6 a month earlier. This reading was much worse than expected, as the estimate stood at -C$14.3 billion. Meanwhile, inflation indicators are going from bad to worse. RMPI, which boasted a gain of 4.2% back in July, posted a second straight decline in October. The index dropped 2.3%, missing the estimate of -2.1%, and posted a sixteen-month low. Industrial Product Price Index posted a decline of -0.3%, matching the forecast. The weak inflation numbers point to depressed economic activity. If Friday’s GDP release continues in this vein, we could see the loonie head southward.

In the US, employment numbers continue to look sharp. For a second straight week, Unemployment Claims came in lower than market expectations. With increasing speculation about a QE taper, employment releases will remain under the market microscope. If employment numbers continue to improve, we can expect the Fed to scale down QE early in 2014, which would likely give a big boost to the US dollar.


USD/CAD for Thursday, November 28, 2013

Forex Rate Graph 21/1/13

USD/CAD November 28 at 14:45 GMT

USD/CAD 1.0589 H: 1.0598 L: 1.0571


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 almost unchanged in Thursday trading. This is reflected in the current movement of the pair, as the pair 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 to higher ground.

The Canadian dollar remains under pressure, although we are seeing almost no movement on Thursday. We can expect the pair to continue to trade close to the 1.06 line 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]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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