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USD/CAD – Canadian dollar hits 6-week high as US oil inventories slump

The Canadian dollar has posted slight gains in the Thursday session. Currently, USD/CAD is trading at 1.3054, up 0.06% on the day. On the release front, there are no Canadian indicators for the remainder of the week. In the U.S, the focus is on durable goods orders. Core durable goods orders is expected to climb to 0.5% and the durable goods orders is forecast to jump to 3.0%. Both indicators recorded declines in the previous release. On Friday, the U.S releases Advance GDP and UoM Consumer Sentiment.

Canadian policymakers are keeping a close eye on Wednesday’s breakthrough in the EU-U.S trade war. On Wednesday, EU Commission President Jean-Claude Juckner met with President Trump, and the talks appear to have been more successful than expected. The parties agreed to hold off on any further tariffs while talks are ongoing. This is a major concession from Trump, who had threatened to impose tariffs on European car imports. U.S tariffs on European aluminum and steel will remain in place, but Juckner pointed out that the U.S has agreed to reassess these measures. The surprise agreement eases fears of a full-blown transatlantic trade war. Will the goodwill displayed by Trump extend into some kind of agreement with Canada as well?

The Canadian dollar posted strong gains on Wednesday, following an Energy Information Administration report showed a huge decline of 6.1 million in U.S crude inventories. This is the second decline in three months, and was much higher than the estimate of 2.6 million. Tensions between Iran and the U.S have also raised concerns about oil supplies, and higher crude prices have boosted the Canadian dollar.

  Risk on as US and Europe avert trade battle [1]

  U.S-E.U calls a ceasefire in the trade war [2]

USD/CAD Fundamentals

Thursday (July 26)

Friday (July 27)

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, July 26, 2018

USD/CAD, July 26 at 8:05 DST

Open: 1.3046 High: 1.3061 Low: 1.3025 Close: 1.3054

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2733 12831 1.2970 1.3067 1.3160 1.3292

USD/CAD inched higher in the Asian session. In European trade, the pair edged lower but has recovered

Further levels in both directions:

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]

Market Analyst at OANDA [7]
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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