USD/CAD – Limited Movement as Unemployment Claims Match Forecast

The Canadian dollar is showing little movement on Thursday, as USD/CAD trades slightly under the 1.14 line. On the release front, Canadian Ivey PMI climbed to 56.9 points, well above expectations. In the US, Unemployment Claims improved to 297 thousand.

There was good news on the US employment front, as jobless claims improved to 297 thousand, practically matching the forecast. We’ll get a look at the official Nonfarm Employment Change report on Friday, with the markets expecting a strong reading of 231 thousand. If the indicator meets expectations, the US dollar could take advantage and post gains.

As was widely expected, the Bank of Canada held the benchmark interest rate at an even 1.00%, where it has been pegged since September 2010. In a rate statement, the BOC said that while lower oil prices are a serious concern, the economy is in good shape and is showing signs of a broad recovery. The BOC statement gave a boost to the Canadian dollar, which has struggled to stay below the 1.14 line. The Canadian economy has showed signs of improvement, as underscored by the September GDP reading, which came in at 0.4%, marking a four-month high.

USD/CAD for Thursday, December 4, 2014

USD/CAD December 4 at 15:35 GMT

USD/CAD 1.1397 H: 1.1340 L: 1.1386

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.1004 1.1124 1.1278 1.1414 1.1493 1.1669

 

  • USD/CAD has been uneventful during the day. The pair climbed to a high of 1.1397 early in the North American session, but has since edged lower.
  • 1.1278 continues to provide strong support.
  • On the upside, 1.1414 is once again under pressure. 1.1493 is stronger.
  • Current range: 1.1278 to 1.1414

Further levels in both directions:

  • Below: 1.1278, 1.1124, 1.1004, 1.0961 and 1.0886
  • Above: 1.1414, 1.1493, 1.1669 and 1.1723

 

OANDA’s Open Positions Ratio

USD/CAD ratio is evenly split between long and short positions, indicative of a lack of trader bias as to what direction the pair will take next.

USD/CAD Fundamentals

  • 00:30 US FOMC Member Richard Fisher Speaks.
  • 12:30 US Challenger Job Cuts.
  • 13:30 US Unemployment Claims. Estimate 296K. Actual 297K.
  • 13:30 US FOMC Member Loretta Mester Speaks.
  • 15:00 Canadian Ivey PMI. Estimate 52.7 points. Actual 56.9 points.
  • 15:30 US Natural Gas Storage. Estimate -51B. Actual -22B.
  • 17:30 US FOMC Member Lael Brainard Speaks.

* 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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.