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USD/CAD – Canadian dollar drifting, U.S retail sales jump

The Canadian dollar is showing limited movement in the Thursday session. Currently, USD/CAD is trading at 1.3229, down 0.10% on the day. On the release front, it’s a busy day in the United States. Retail sales rebounded with a strong gain of 0.7% in October, after a decline of -0.1% a month earlier. Core retail sales jumped 0.8%, after a gain of 0.1% in September. Elsewhere, the Philly Fed Manufacturing Index fell sharply to 12.9, shy of the estimate of 20.1 points. Unemployment claims edged higher to 216 thousand, above the estimate of 213 thousand. This was the highest reading since August. Canadian ADP nonfarm employment change came in at -23.0 thousand, its first decline since July. On Friday, Canada releases Manufacturing Sales.

On Wednesday, U.S consumer inflation numbers beat their estimates for October. The consumer price index posted a gain of 0.3%, its strongest gain since January. Core CPI, which excludes food and energy prices edged higher to 0.2%, marking a 3-month high. Both releases were in line with forecasts. Core CPI was 2.1% higher than a year ago, and this solid release means that the Fed remains on track to continue raising interest rates. The Federal Reserve holds its next policy meeting in December, with the odds of a December rate hike at 72%, according to the CME Group.

The Canadian dollar continues to struggle in November. Earlier in the month, USD/CAD touched a high of 1.3264, its highest level since July. The currency tends to lose ground when risk appetite is low, and trouble spots such as U.S-China relations, Brexit and the Italian budget crisis have unnerved global equity markets. A hawkish Federal Reserve has also led to investors snapping up U.S. dollars. With the U.S. economy firing on all cylinders and the Fed expected to continue its stance of gradual rate increases, the Canadian dollar could continue to face headwinds in November.

European open – Brexit deal, Italy budget and oil [1]

Sterling braces for wild moves after cabinet meeting [2]

Pound plummets on Brexit resignations [3]

USD/CAD Fundamentals

Thursday (November 15)

Friday (November 16)

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, November 15, 2018

USD/CAD, November 15 at 8:10 EST

Open: 1.3242 High: 1.3250 Low: 1.3210 Close: 1.3229

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2970 13099 1.3198 1.3292 1.3383 1.3461

USD/CAD ticked higher in the Asian session but then retracted. The pair showed little movement in the European session and is unchanged in the North American session

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 [7]

Market Analyst at OANDA [8]
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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