USD/CAD – Steady as US Employment Data Softens

USD/CAD has posted slight gains on Thursday, as the pair trades in the mid-1.13 range. On the release front, US Unemployment Claims disappointed, climbing to 290 thousand. As well, JOLTS Jobs Openings slipped to 4.74M. Later in the day, Fed Chair Janet Yellen will speak at a conference in Washington hosted by the ECB and Federal Reserve. In Canada, the New Housing Price Index slipped to 0.1%.

Canadian inflation levels remain low, which continues to weigh on the economy. On Thursday, the New Housing Price Index posted a weak gain of 0.1%, down from 0.3% a month earlier. The estimate stood at 0.2%. The markets are keeping an eye on Manufacturing Sales, a key event which will be released on Friday. The markets are expecting a strong turnaround in the upcoming release, with an estimate of 1.3%.

US Unemployment Claims has looked solid in recent readings, but the key indicator jumped to 290 thousand, missing the estimate of 282 thousand. This marked a seven-week high for the key indicator. The news wasn’t any better from JOLTS Jobs Openings, which weakened to 4.74M, down from 4.84M a month earlier. The estimate stood at 4.81M. On Friday, we’ll get a look at US retail and consumer confidence numbers, so we could see some stronger movement from USD/CAD.

USD/CAD for Thursday, November 13, 2014

USD/CAD November 13 at 16:15 GMT

USD/CAD 1.1345 H: 1.1348 L: 1.1300

USD/CAD Technical

• USD/CAD was uneventful in the Asian and European sessions. The pair has edged higher in North American trading.
• 1.1278 is providing support.
• On the upside, 1.1414 is the next resistance line.
• Current range: 1.1278 to 1.1414

Further levels in both directions:

• Below: 1.1278, 1.1124, 1.1004 and 1.0961
• Above: 1.1414, 1.1493, 1.1669, 1.1723 and 1.1875

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in long positions on Thursday. This is consistent with the movement of the pair, as the Canadian dollar has posted slight gains. The ratio close to an event split, indicative of a lack of trader bias regarding what to expect from USD/CAD.

USD/CAD Fundamentals

• 13:30 Canadian NHPI. Estimate 0.2%. Actual 0.1%.
• 13:30 US Unemployment Claims. Estimate 282K. Actual 290K.
• 15:00 US JOLTS Job Openings. Estimate 4.81M. Actual 4.74M.
• 16:00 US Crude Oil Inventories. Estimate 0.7M. Actual -1.7M.
• 17:30 US FOMC Member Charles Plosser Speaks.
• 17:45 Federal Reserve Chair Janet Yellen Speaks.
• 18:01 US 30-year Bond Auction.
• 19:00 US Federal Budget Balance. Estimate -111.5B.
• 20:30 US FOMC Member Narayana Kocherlakota Speaks.
• 20:05 BoC Senior Deputy Governor Carolyn Wilkins Speaks.

* Key releases are highlighted in bold

*All release times are GMT

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