USD/CAD dips lower on light data calendar

USD/CAD has started the week with slight losses. In Monday’s North American session, the pair is trading at 1.3260, down 0.122% on the day.

Investors eye BoC Business Outlook Survey

It’s a quiet start to the week on the fundamental front, which means that it could be an uneventful start to the week for USD/CAD. There are no tier-1 releases out of Canada or the US on Monday. In Canada, Wholesale Sales slowed to just 0.3%, down from 4.3% a month earlier. Still, this beat the estimate of 0.1%. The Bank of Canada released its Business Outlook report, which is released each quarter. The report found that businesses expect the pace of recovery of sales to slow. As well, the report stated that there are indications that “the pace of the recovery will slow and be uneven across industries.” This release is useful to gauge the mood of the business sector, and the findings reiterate that Canada’s economic recovery is tenuous, which could a bumpy road ahead for the Canadian dollar.

The critical manufacturing sector may also be slowing down. On Friday, Canada Manufacturing Sales came in at -2.0%, its first decline in four months. The Canadian dollar managed to shrug off the weak data, but if upcoming manufacturing releases also point lower, this will build pressure on the Canadian currency.


USD/CAD Technical

  • USD/CAD is testing support at 1.3169. Below, there is support at 1.3142
  • There is resistance at 1.3230. This is followed by resistance at 1.3264
  • The 10-day MA line is currently just above the pair

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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