The Canadian dollar is listless on Monday, as USD/CAD trades in the mid-1.14 range. On the release front, Canadian Building Permits slipped to 0.7% in October. There was better news from Housing Starts, which jumped to 196 thousand. In the US, the sole event on the calendar was Labor Market Conditions Index, a new economic indicator which the Federal Reserve introduced in October. The indicator fell to 2.9 points in November.
Canadian data started off the week on a mixed note. Building Permits, which tends to show strong fluctuation, tumbled to 0.7%, compared to a 12.7% gain a month earlier. This fell short of the forecast of 2.1%. There was better news from Housing Starts, which posted a strong gain of 196 thousand, up from 184 thousand in the previous release. However, the reading was short of the estimate of 201 thousand.
US employment data looked superb on Friday, as Nonfarm Payrolls shot up to 321 thousand in November, stunning the markets which had expected a rise of 231 thousand. There was also a rise in wages, which translate into stronger inflation numbers. The unemployment rate held steady at 5.8%, matching the forecast. The excellent Nonfarm Payrolls should help allay concerns about whether the economy can weather an expected rate increase in 2015.
USD/CAD for Monday, December 8, 2014
USD/CAD December 8 at 15:25 GMT
USD/CAD 1.1448 H: 1.1459 L: 1.1427
- USD/CAD has been marked by limited movement in the Asian and European sessions. The pair has edged up in North American trade.
- 1.1414 is providing weak support. 1.1278 is stronger.
- 1.1493 is an immediate resistance line. 1.1669 is next.
- Current range: 1.414 to 1.1493
Further levels in both directions:
- Below: 1.1414, 1.1278, 1.1124, 1.1004 and 1.0961
- Above: 1.1493, 1.1669, 1.1723 and 1.1875
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 small gains. The ratio has a majority of short positions, indicative of trader towards the pair losing ground.
- 13:13 Canadian Housing Starts. Estimate 201K. Actual 196K.
- 13:30 Canadian Building Permits. Estimate 2.1%. Actual 0.7%.
- 15:00 US Labor Markets Conditions Index.
* Key releases are highlighted in bold
*All release times are GMT