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

USD/CAD – Back Above 1.10 as Canadian Dollar Slips

USD/CAD has moved sharply higher at the start of the trading week, as the pair trades slightly above the 1.10 line on Monday. On the release front, US Existing Home Sales sputtered, as the indicator dropped sharply to 5.05 million last month. Today’s sole release from Canada is a speech by BOC Senior Deputy Governor Carolyn Wilkins at an event in Toronto.

US Existing Home Sales didn’t impress, slipping to 5.05 million, compared to 5.15 million in the previous release. This was way off the estimate of 5.21 million. The indicator had exceeded the estimate in the past three releases, so the weak numbers disappointed the markets. We’ll get a look at New Home Sales on Wednesday.

On Friday, Canadian key numbers were a mix. There was unexpected good news from Canada’s inflation front, as Core CPI jumped 0.5% in August, compared to reading of -0.1% a month earlier. This beat the estimate of 0.2%. CPI improved to 0.0%, ahead of the forecast of -0.2%. However, Wholesale Sales slipped to a 4-month low at -0.3%, way off the estimate of +0.8%. Earlier last week, Manufacturing Sales, a key release, jumped 2.5% in August. This easily beat the estimate of 1.1%.

The Federal Reserve released a highly-anticipated policy statement on Wednesday. The statement reaffirmed that interest rates would remain ultra-low for a “considerable time” after the asset purchase scheme (QE) ends next month, but surprised the markets in hinting that once a rate hike was introduced, rate levels could move up more quickly than expected. As expected, the Fed trimmed QE by $10 billion/month, and the remaining $15 billion/month is scheduled to be phased out in October.


USD/CAD for Monday, September 22, 2014

USD/CAD September 22 at 14:20 GMT

USD/CAD 1.1014 H: 1.1014 L: 1.0926


USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0852 1.0961 1.1004 1.1124 1.1278 1.1414


Further levels in both directions:


OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions on Monday. This is not consistent with the movement of the pair, as the Canadian dollar has posted strong losses. The ratio has a majority of long positions, indicating trader bias towards the US dollar continuing to move higher.


USD/CAD Fundamentals

* 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 [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

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