The Canadian dollar has posted small gains in the Tuesday session. Currently, USD/CAD is trading at 1.3167, down 0.04% on the day. On the release front, there are no Canadian indicators on the schedule. The U.S will release services and manufacturing PMIs and the Richmond Manufacturing Index.
USD/CAD posted sharp losses on Friday, as the Canadian dollar posted strong gains of 1.0 percent. The currency received a welcome boost from May retail sales reports. Core Retail Sales jumped 1.4%, after failing to post gains for three straight months. This easily beat the forecast of 0.6%. Retail Sales rebounded 2.0%, above the forecast of 1.0%. This follows a decline of 1.2% in April. Consumer inflation in June remained pegged at 0.1%, matching the forecast. However, on an annualized basis, CPI rose 2.5%, its best showing since 2012.
After months of tit-for-tat tariffs and harsh rhetoric, will the EU and U.S patch up relations this week? The U.S slapped tariffs on EU steel and aluminum back in June, and the EU has since retaliated with tariffs on a range of U.S products. U.S President Trump has not shied away from harsh criticism about the EU, and a recent NATO summit exposed the frosty relations between Trump and EU leaders. Still, there could be better news ahead, as EU President Jean-Claude Juckner meets with President Trump on Wednesday. On Friday, Trump attacked the EU and China for manipulating their currencies and keeping interest rates lower. This has raised concerns that the current global trade tensions could be followed by a currency war. Growing concerns over the dangers of the ongoing trade war were summed up in the final communiqué from the G-20 meeting in Argentina over the weekend, which noted that “heightened trade and geopolitical tensions pose an increased risk to global growth”.
Tuesday (July 24)
- 9:00 US HPI. Estimate 0.4%
- 9:45 US Flash Manufacturing PMI. Estimate 55.1
- 9:45 US Flash Services PMI. Estimate 56.5
- 10:00 US Richmond Manufacturing Index. Estimate 18
Wednesday (July 25)
- 10:00 US New Home Sales. Estimate 671K
*All release times are DST
*Key events are in bold
USD/CAD for Tuesday, July 24, 2018
USD/CAD, July 24 at 9:10 DST
Open: 1.3173 High: 1.3191 Low: 1.3142 Close: 1.3167
In the Asian session, USD/CAD ticked higher. The pair edged lower in European trade and is steady in North American trade
- 1.3160 is fluid. Currently, it is a weak support line
- 1.3292 is the next line of resistance
- Current range: 1.3160 to 1.3292
Further levels in both directions:
- Below: 1.3160, 1.3067, 1.2970 and 1.2831
- Above: 1.3292, 1.3436 and 1.3530
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