The Canadian dollar is slightly lower at the start of the new trading week. Currently, USD/CAD is trading at 1.2982, up 0.09% on the day. On the release front, there are no Canadian or U.S events on the schedule. The U.S markets are closed for Memorial Day, so traders can expect a quiet day from the pair. On Tuesday, the U.S releases CB Consumer Confidence, which is expected to dip to 128.7 points.
The drama and uncertainty continue to swirl around the upcoming summit between President Trump and North Korean leader Kim Jong-un, which may or may not take place on June 12 in Singapore. Just a few days ago, Trump sent a letter to Kim, saying that Trump was canceling the much-anticipated meeting. However, the response from Pyongyang was restrained, and the White House has sent a team to Singapore in case the summit is back on. Meanwhile, the leaders of South Korea and North Korea met on the weekend. That meeting was completely unexpected and raises hopes of a breakthrough in the long conflict between the two Koreas.
The Canadian dollar remains under pressure and has lost 1 percent in the month of May. On Monday, USD/CAD is just shy of the symbolic 1.30 level, which has held firm since March. The currency could face a rough week if, as expected, the Bank of Canada holds interest rates at 1.25 percent. Inflation has moved closer to the BoC target of 2 percent and economic growth has been steady, so the bank may opt for the sidelines when policymakers meet on Wednesday. However, with the Federal Reserve widely expected to raise rates next month, the Canadian dollar will be less attractive to investors.
Monday (May 28)
- There are no Canadian or U.S events
Tuesday (May 29)
- 9:00 US S&P/CS Composite-20 HPI. Estimate 6.5%
- 10:00 US CB Consumer Confidence. Estimate 128.2
*All release times are DST
*Key events are in bold
USD/CAD for Monday, May 28, 2018
USD/CAD, May 28 at 8:25 DST
Open: 1.2971 High: 1.2995 Low: 1.2961 Close: 1.2982
USD/CAD ticked higher in the Asian session and has recorded small gains in the European session
- 1.2943 is providing support
- 1.3015 is a weak line of resistance
- Current range: 1.2943 to 1.3015
Further levels in both directions:
- Below: 1.2943, 1.2850, 1.2757 and 1.2687
- Above: 1.3015, 1.3125 and 1.3273
OANDA’s Open Positions Ratio
In the Monday session, USD/CAD ratio is showing short positions with a majority (65%). This is indicative of trader bias towards USD/CAD reversing directions to move downwards.