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USD/CAD – Stable as Wholesale Sales Matches Expectations

The Canadian dollar is steady on Monday, as USD/CAD trades in the mid-1.12 range in the North American session. On the release front, Canadian Wholesale Sales posted a slight gain of 0.2%. It’s a quiet day in the US, with no data releases on Monday.

Canada posted key data on Monday, with Wholesale Sales posting a gain of 0.2%, matching the forecast. The indicator bounced back from a decline of 0.3% in the previous release. Meanwhile, inflation levels remain very low. On Friday, Core CPI softened to 0.2%, down from 0.5% a month earlier. The estimate stood at 0.1%. CPI posted a weak gain of 0.1%, edging above the estimate of 0.0%.

US releases wrapped up the week on a high note, as UoM Consumer Sentiment climbed to 86.4 points, its highest reading since July 2007. The markets had expected a reading of 84.3 points. This indicates that the US consumer remains optimistic about the economy and is not overly concerned about warnings of a global slowdown. On the housing front, Building Permits and Housing Starts met expectations. Strong US employment numbers continue to drive the US recovery, as US job claims dropped to 264 thousand, marking a 14-year low. The estimate stood at 286 thousand.

 

USD/CAD for Monday, October 20, 2014

USD/CAD October 20 at 14:05 GMT

USD/CAD 1.1262 H: 1.1291 L: 1.1252

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0961 1.1004 1.1124 1.1278 1.1414 1.1493

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/CAD ratio has posted gains in short positions on Monday. This is consistent with the pair’s movement, as the Canadian dollar has posted gains. The ratio has a majority of short positions, indicating trader bias towards the Canadian dollar gaining ground.

 

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

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