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USD/CAD – Canadian dollar slides on market meltdown, U.S data slips

The Canadian dollar has steadied in the Wednesday session, after suffering sharp losses on Tuesday. USD/CAD is trading at 1.3292, down 0.07% on the day. On the release front, Canadian Wholesale Sales declined 0.5%, marking its third decline in four releases. In the U.S, core durable goods orders remained pegged at 0.1%, shy of the estimate of 0.4%. Durable goods orders were dismal, with a sharp decline of 4.4%, compared to the estimate of -2.2%. This was the sharpest drop since August 2017. On Thursday, Canada releases corporate profits and the Bank of Canda financial system review.

A sharp fall in technological stocks on Wednesday sent the Canadian dollar reeling. A staggering trillion dollars were wiped off the balance sheets, and investors responded by dumping risk assets like the Canadian currency. USD/CAD jumped 1.03% on Wednesday, as the pair punched above the 1.33 level for the first time since late June. The nagging U.S-China trade dispute has taken a bite out of both economies, and investors are concerned that the conflict will dampen the current economic expansion. Both the Dow Jones and S&P 500 indices gave up their year-to-date gains, and further corrections in global equity markets could mean more headwinds for the wobbly Canadian dollar.

There had been hopes that the U.S might ease up on the rhetoric against China, but those hopes were dashed on Sunday, at an Asian-Pacific summit in Papua New Guinea. The meeting ended in discord, with leaders unable to agree on a final communique. U.S Vice President Mike Pence, who headed the U.S. delegation, was blunt in his remarks, saying that China would have to drastically change its trade practices before the U.S. would remove current tariffs on $250 billion in Chinese goods.

European open – Europe higher in fragile markets [1]

The global rout pauses for breath [2]

Equity bleeding has temporarily stopped [3]

USD/CAD Fundamentals

Wednesday (November 21)

Thursday (November 22)

*All release times are DST

*Key events are in bold

USD/CAD for Wednesday, November 21, 2018

USD/CAD, November 21 at 9:00 EST

Open: 1.3306 High: 1.3318 Low: 1.3270 Close: 1.3292

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2970 1.3099 1.3198 1.3292 1.3383 1.3461

USD/CAD was flat in the Asian session and has edged lower in European trade

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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