USD/CAD – Higher oil prices boosts CAD to 3-week high

The Canadian dollar has posted slight losses on Tuesday, after starting the week with considerable gains. Currently, USD/CAD is trading at 1.3295, down 0.18% on the day. On the release front, there are no Canadian releases on the schedule. In the U.S., the highlight is JOLTS Jobs Openings, which is expected to drop to 7.54 million. On Wednesday, the U.S. releases consumer inflation data. CPI is expected to improve to 0.3% and Core CPI is projected to climb to 0.2%. As well, the FOMC releases the minutes of the March policy meeting.

On Wednesday, the spotlight will be on the Federal Reserve, which releases the minutes of the March meeting. At the meeting, the Fed said it would start tapering the reduction of its balance sheet in May. This marks a loosening of policy, and comes in response to weaker economic data out of the U.S. in recent months. The minutes should be treated as a market-mover, and if investors don’t like what they hear, risk apprehension could jump and send the Canadian dollar lower.

Oil prices continue to point upwards and have pushed above $64 for the first time since early November. Civil unrest in Libya could mean that the upward trend will continue. Canada is a major oil producer, so the rise in oil prices has been good news for the Canadian currency, which is trading at its highest level since March 21. The Canadian dollar has also benefited from stronger risk appetite, as investors are optimistic that the bruising global trade war could dramatically ease, as trade talks between the U.S. and China have made substantial progress.

Commodities Weekly: Oil at 5-month high on Libya supply concerns

FX rumbles as the street slumbers

USD/CAD Fundamentals

Tuesday (April 9)

• 10:00 US JOLTS Job Openings. Estimate 7.54M

Wednesday (April 10)

• 8:30 US CPI. Estimate 0.3%
• 8:30 US Core CPI. Estimate 0.2%
• 14:00 US FOMC Meeting Minutes

*All release times are DST

*Key events are in bold

USD/CAD for Tuesday, April 9, 2019

USD/CAD, April 9 at 7:55 EST

Open: 1.3314 High: 1.3319 Low: 1.3293 Close: 1.3290

USD/CAD Technical

USD/CAD was flat in the Asian session and has posted slight losses European trade

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

Further levels in both directions:

• Below: 1.3290, 1.3200 and 1.3125
• Above: 1.3383, 1.3445, 1.3552 and 1.3662

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