USD/CAD – Canadian dollar quiet as CPI remains steady

USD/CAD is trading sideways on Wednesday. In the North American session, the pair is trading at 1.3344, down 0.04% on the day. On the release front, Canadian CPI remained pegged at 0.7% in March, matching the forecast. There are no major U.S. releases on the calendar. Thursday will be busy on both sides of the border. Canada releases retail sales reports and ADP nonfarm payrolls. In the U.S., in addition to retail sales, we’ll get a look at the Philly Fed manufacturing index and unemployment claims.

The Canadian dollar hasn’t shown much movement of late. Oil prices have been moving higher, which has bolstered the loonie, as Canada is a major oil producer. However, this has been largely offset by concerns that the Bank of Canada could cut interest rates at next week’s policy meeting. Canadian economic data has been lukewarm, as the tariff war between the U.S. and China has hurt Canadian exports. On Thursday, investors will be keeping a key eye on Canadian retail sales numbers, hoping to get a better read on the BoC’s rate plans after the release of retail sales. With the U.S. releasing a host of key events, traders should be prepared for some movement from the pair during Thursday’s North American session.

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USD/CAD Fundamentals

Wednesday (April 17)

  • 8:30 Canadian CPI. Estimate 0.7%. Actual 0.7%
  • 8:30 US Trade Balance. Estimate -53.5B. Actual -49.4B
  • 10:00 US Final Wholesales Inventories. Estimate 0.4%. Actual 0.2%
  • 10:30 US Crude Oil Inventories. Estimate -1.2M. Actual -1.4
  • 12:45 US FOMC Member Bullard Speaks
  • 14:00 US Beige Book

Thursday (April 18)

  • 8:30 Canadian Retail Sales. Estimate 0.2%
  • 8:30 Canadian Core Retail Sales. Estimate 0.4%
  • 8:30 US Core Retail Sales. Estimate 0.7%
  • 8:30 US Retail Sales. Estimate 0.9%
  • 8:30 US Philly Fed Manufacturing Index. Estimate 11.2
  • 8:30 US Unemployment Claims. Estimate 207K

*All release times are DST

*Key events are in bold

USD/CAD for Wednesday, April 17, 2019

USD/CAD, April 17 at 13:15 DST

Open: 1.3350 High: 1.3373 Low: 1.3275 Close: 1.3344

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3125 1.3200 1.3290 1.3383 1.3445 1.3552

USD/CAD ticked lower in the Asian and European sessions. The pair edged lower early in North American trade but has recovered

  • 1.3290 is providing 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 and 1.3125
  • Above: 1.3383, 1.3445, 1.3552 and 1.3662

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.