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USD/CAD – Canadian Dollar Subdued, Housing Starts Next

The Canadian dollar has started the new trading week quietly session. Currently, USD/CAD is trading at 1.2791, up 0.07% on the day. On the release front, Canada releases Housing Starts, which is expected to drop to 219 thousand. As well, the Bank of  Canada releases its well-respected  Business Outlook Survey. There are no US events on the schedule. On Tuesday, Canada releases Building Permits and the US releases PPI, a key inflation indicator.

On Friday, the US released a very soft nonfarm payroll report. The indicator fell to 103 thousand, well off the forecast of 188 thousand. Still, the markets do not appear overly concerned, as payroll reports often sag in March. On a more positive note, wage growth improved to 0.3%, up from 0.1% a month earlier. This release matched the estimate. The improvement is likely to reinforce sentiment that the Fed could press the rate trigger four times in 2018, which could push the US dollar higher.

After months of arduous negotiations, is a NAFTA agreement within reach? US President Trump has been pushing hard for a renegotiated NAFTA, and had threatened to walk away from the talks if his demands were not met. There are some outstanding issues still on the table, such as the US demand that all NAFTA-produced cars contain at least 50% US content and Trump’s demand that Mexico pay for a wall on its border with the US. Still, negotiators have sounded cautiously optimistic, and a report earlier this week said that the US was pressing for an announcement of agreement-in-principle at next week’s Summit of the Americas in Peru. The Canadian dollar has been under pressure over lingering uncertainty with regard to NAFTA, and a new deal could boost the Canadian currency.

Another Freaky Friday [1]

Trade Spat Fallout To Direct Markets [2]

USD/CAD Fundamentals

 Monday (April 9)

 Tuesday (April 10)

*All release times are GMT

*Key events are in bold


USD/CAD for Monday, April 9, 2018

USD/CAD, April 9 at 7:50 EST

Open: 1.2782 High: 1.2819 Low: 1.2763 Close: 1.2791


USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2590 1.2687 1.2757 1.2850 1.2930 1.3050

USD/CAD was flat in the Asian session and has posted slight gains in European trade

Further levels in both directions:

OANDA’s Open Positions Ratio

In the Monday session, USD/CAD ratio is showing a majority (54%), indicative of USD/CAD reversing directions and moving lower.

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 [6]

Currency Analyst at Market Pulse [7]
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.