USD/CAD gains punches above 1.34

USD/CAD has posted slight gains on Thursday. In the North American session, the pair is trading at 1.3412, up 0.19% on the day. The US dollar continues to head higher, and the pair is up 1.5% so far this week.

On the fundamental front, there are no Canadian events for the remainder of the week. In the US, unemployment claims rose to 870 thousand, up from 860 thousand a week earlier. This was well above the forecast of 845 thousand, but the US dollar has held its own against the major currencies on Thursday, including the Canadian dollar.

Powell wraps up charm offensive on Capitol Hill

Federal Reserve Chair Jerome Powell testified earlier on Thursday before the Senate Bank Committee. Powell has been speaking before congressional committees every day this week. On Thursday, Powell said that the Federal Reserve is taking all available steps to support the economic recovery, including ultra-low interest rates, an increase in QE and establishing new lending programs. On Thursday, Powell said that the economy is showing signs of recovery since the second quarter, noting that many economic indicators are sharply higher. Powell treaded lightly on the question of the fiscal stimulus bill, which has been blocked in Congress, saying that “direct fiscal support may be needed”.

Oil and Gold steady but risks to outlook remain

Dollar set to outperform?

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USD/CAD Technical

  • 1.3414 has been under pressure in resistance throughout the day. The next resistance line is at 1.3445
  • There is support at 1.3323, followed by support at 1.3263

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 Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.