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USD/CAD – Loonie Rally Continues As US Unemployment Claims Shine

USD/CAD continues to drop, as the pair trades in the mid-1.10 range on Thursday. In Thursday news, US Unemployment Claims continue to drop, but Pending Home Sales disappointed with its second decline in three readings. There are no Canadian releases for the remainder of the week.

US Unemployment Claims continues to impress. The key indicator dropped to 311 thousand, its lowest level in over three months. The estimate was 326 thousand, marking the fourth straight week that the reading has come in below the forecast. The news was not as good from Pending Home Sales, with a reading of -0.8%. This disappointed the markets, which had expected a small gain of 0.1%. Earlier in the week, New Home Sales also lost ground in February, and concern is bound to increase about the health of the US housing industry.

Ukraine’s economy is in shambles as a result of the four-month political crisis. Prime Minister Arseniy Yatsenyuk acknowledged that the country is on the edge of bankruptcy, and GDP could drop by 3% this year. However, help is on the way. The IMF is set to sign a two-year loan of up to $18 billion, and the EU has offered a package of EUR 11 billion. Ukraine has already received two bailouts from the IMF since 2008, and will have to implement budget cuts and other measures in order to receive the new package from the IMF.

 

USD/CAD for Thursday, March 27, 2014

Forex Rate Graph 21/1/13

USD/CAD March 27 at 15:10 GMT

USD/CAD 1.1065 H: 1.1104 L: 1.1052

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0852 1.0906 1.1000 1.1094 1.1177 1.1319

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in long positions in Thursday trade, continuing the trend we have seen for much of the week. This is not consistent with what we are seeing from the pair, as the US dollar has posted more losses. The ratio has a slight majority of long open positions, indicating a slight trader bias to  USD/CAD reversing its downward direction.

USD/CAD continues to lose ground. Will the pair push below the key 1.10 line? The pair is showing little movement in 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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