USD/CAD – Canadian dollar edges higher, investors look for cues

USD/CAD has posted slight gains in the Friday session. Currently, the pair is trading at 1.3318, down 0.29% on the day. On the release front, there are no Canadian or U.S. events on the schedule.

Considering the weak performance of Canadian indicators this week, the Canadian dollar has done well, with only modest losses against the greenback. Manufacturing Sales declined by 1.4% in November, its sharpest decline in over a year. Consumer spending also sagged in November. Retail Sales and Core Retail Sales both recorded declines, with readings of -0.9% and -0.3%, respectively. The economy will receive a report card next week, with the release of the monthly GDP report. This key event should be treated as a market-mover.

There was good news from the U.S. labor market, as unemployment claims dropped sharply, from 213 thousand to 199 thousand. This was the first time that the indicator dropped below the 200-thousand level since 1969. The four-week average, which is less volatile, dropped by 5.5 thousand to 215,000. The strong figures indicate that the employment picture remains bright, despite the ongoing U.S. government shutdown, which has resulted in the layoff of some 800,000 government workers.

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USD/CAD Fundamentals

  • There are no U.S. or Canadian events

*All release times are EST

*Key events are in bold

USD/CAD for Friday, January 25, 2019

USD/CAD, January 25 at 7:05 EST

Open: 1.3343 High: 1.3369 Low: 1.3329 Close: 1.3347

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3125 1.3200 1.3290 1.3383 1.3461 1.3552

USD/CAD edged lower in the Asian session and is showing limited movement in European trade

  • 1.3290 is providing weak support
  • 1.3383 is the next resistance line
  • Current range: 1.3290 to 1.3383

Further levels in both directions:

  • Below: 1.3290, 1.3200, 1.3125 and 1.3049
  • Above: 1.3383, 1.3461 and 1.3552

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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.