USD/CAD has recorded slight gains on Thursday, after posting strong losses on Wednesday. Currently, the pair is trading quietly at 1.3534, up 0.19% on the day. On the fundamental front, there were strong numbers on both sides of the border.
Canada ADP Nonfarm Payrolls sparkles
Canada created 953 thousand jobs in June, and the ADP nonfarm payrolls report followed suit and a glowing release. The report found that employment increased by 1.042 million, another sign that the employment sector is rapidly improving.
On Wednesday, the Bank of Canada held rates at 0.25%. Governor Tiff Macklem said that the bank would not raise rates until inflation rises to the bank’s target rate of 2 percent. That could take some time – the BoC is forecasting inflation at 0.6% in 2020 and 1.2% in 2021. The bank also forecast that GDP would contract 6.8% this year before rebounding by 4.9% in 2021.
In the US, there was good news as retail sales climbed 7.5%, beating the estimate of 5.0%. This was a second successive gain after three straight declines. The core reading also looked sharp, with a gain of 7.3%.
Thursday (July 16)
- 8:30 Canada ADP Nonfarm Payrolls. Actual 1042.9K
- 8:30 Canada Foreign Securities Purchases. Actual 22.41B
- 8:30 US Core Retail Sales. Estimate 5.0%. Actual 7.3%
- 8:30 US Retail Sales. Estimate 5.0%. Actual 7.5%
- 8:30 US Unemployment Claims. Estimate 1250K. Actual 1300K
Friday (July 17)
- 10:00 US Preliminary UoM Consumer Sentiment. Estimate 79.0
*Key events are in bold
*All times are EDT
USD/CAD posted slight gains in the Asian and European sessions. The pair is flat in North American trade
- 1.3470 is providing support. Below, we find support at 1.3431
- 1.3584 is the next line of resistance, followed by resistance at 1.3659. Above, the 50-day MA is a resistance line at 1.3684
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