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USD/CAD – Slight Gains as Key US Data Misses Expectations

The Canadian dollar is slightly lower on Wednesday, as USD/CAD trades in the mid-1.24 range. On the release front, Canadian Wholesale Sales posted a strong gain of 2.5%, but the Canadian dollar was unable to take advantage. In the US, Building Permits missed the estimate with a reading of 1.08 million, while PPI posted a sharp decline of 0.8%. Later in the day, the Federal Reserve will release then minutes of its most recent policy meeting.

The first key US readings of the week failed to impress the markets. Building Permits improved to 1.05 million, but this fell short of the estimate of 1.08M. Housing Starts matched the forecast of 1.07 million, down from 1.09 million a month earlier. On the inflation front, PPI was dismal, coming in at -0.8%. This was short of the forecast of -0.4% and marked the indicator’s fourth decline in five months, as the US continues to struggle with weak inflation.

The markets are keeping a close eye on the Fed minutes, which will be released later on Wednesday. With the US economy showing strong growth and positive employment numbers, there are widespread expectations for a rate hike as early as the summer. Any hints regarding a hike could provide a strong boost for the US dollar against its major rivals.

USD/CAD for Wednesday, February 18, 2015

USD/CAD February 18 at 17:40 GMT

USD/CAD 1.2451 H: 1.2466 L: 1.2381


USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2190 1.2261 1.2387 1.2469 1.2543 1.2680


Further levels in both directions:


OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged on Wednesday, continuing the lack of activity we saw a day earlier. This is consistent with the lack of movement we are currently seeing from the pair. The ratio is pointing to a majority of long positions, indicative of trader bias towards the Canadian dollar breaking above the next resistance line.

USD/CAD Fundamentals

*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 [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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