USD/CAD – Shutdown deal boost Canadian dollar to 2-week high

USD/CAD is showing little movement in the Monday session. Currently, the pair is trading at 1.3234, up 0.10% on the day. On the release front, there are no Canadian or U.S. events on the schedule, so we can expect a quiet day from the pair. On Tuesday, the U.S. releases CB Consumer Confidence, which is expected to drop to 125.0 points.

The Canadian dollar received an unexpected boost on Friday, courtesy of Donald Trump. The U.S. president signed a bill which provided funds for the U.S. government to operate for three weeks. The breakthrough has raised hopes that an agreement can be reached to end the shutdown, which has lasted over a month. Risk sentiment jumped on the news of a deal, and the Canadian dollar surged over 1.0% on Friday, hitting a 2-week high.

At the same time, last week’s soft Canadian data is a cause for concern. 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 on Thursday, with the release of the monthly GDP report. This key event should be treated as a market-mover.

Brexit, trade war, Fed and US jobs this week

Euro firmer on US dollar slippage, ratings

Be prepared, it’s an action-packed week in capital markets

USD/CAD Fundamentals

Monday (January 28)

  • There are no releases in the U.S. or Canada

Tuesday (January 29)

  • 10:00 US CB Consumer Confidence. Estimate 125.0

*All release times are EST

*Key events are in bold

USD/CAD for Monday, January 28, 2019

USD/CAD, January 28 at 7:45 EST

Open: 1.3218 High: 1.3234 Low: 1.3204 Close: 1.3234

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3049 1.3125 1.3200 1.3290 1.3383 1.3445

USD/CAD ticked lower in the Asian session but has recovered in European trade

  • 1.3200 is providing support
  • 1.3290 is the next resistance line
  • Current range: 1.3200 to 1.3290

Further levels in both directions:

  • Below: 1.3200, 1.3125 and 1.3049
  • Above: 1.3290, 1.3383, 1.3445 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

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.
Kenny Fisher

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