USD/CAD climbs above 1.36 as Canadian dollar falters

USD/CAD is unchanged in the Monday session. Currently, the pair is trading at 1.3592, up 0.07% on the day. There are no Canadian or U.S. events on the schedule.

The Canadian dollar recorded sharp losses on Friday, after posting mixed numbers. GDP for October rebounded with a gain of 0.3%, after a decline of 0.1% in September. This beat the estimate of 0.2%. However, retail sales disappointed. Core retail sales were flat in October, down from 0.1% a month earlier and shy of the forecast of 0.2%. Retail sales improved from 0.2% to 0.3%, but missed the estimate of 0.4%.

U.S numbers were also a mixed bag on Friday. Final GDP came in at 3.4%, revised slightly from the initial reading of 3.5% in November. This was shy of the estimate of 3.5%, but still points to healthy economic growth in the third quarter. Durable goods reports were well short of their estimates. Core durable goods orders declined 0.3%, short of the estimate of 0.3%. This marked the first decline since May. There was better news from durable goods, which rebounded with a gain of 0.8%, after a plunge of 4.3% a month earlier.

The Canadian dollar has dropped to its lowest level since May 2017, as the currency continues to head south. USD/CAD jumped 1.62 percent last week and has climbed 2.3 percent in December. With global equity markets falling to their lowest level since 2008, high trader apprehension has made the Canadian dollar less attractive, as investors stick with safe-haven assets. A quiet Christmas week could halt the steep slide, but further headwinds await the Canadian dollar in January unless risk appetite improves.

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USD/CAD Fundamentals

  • There are no Canadian or U.S. events

*All release times are EST

*Key events are in bold

USD/CAD for Monday, December 24, 2018

USD/CAD, December 24 at 10:00 EST

Open: 1.3601 High: 1.3565 Low: 1.3598 Close: 1.3592

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3383 1.3561 1.3552 1.3696 1.3793 1.4001

USD/CAD edged higher in the Asian session. The pair posted slight gains in the European session but then retracted. USD/CAD has ticked higher in North American trade

  • 1.3552 is providing support.
  • 1.3696 is the next resistance line
  • Current range: 1.3552 to 1.3696

Further levels in both directions:

  • Below:1.3552,  1.3461, 1.3383 and 1.3292
  • Above: 1.3696, 1.3793 and 1.4001

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

Market Analyst at OANDA
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, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.