oanda_logo
  • Sign in
  • Open an account

Sign in

Select account:

  • Currency converter
    • Converter
    • Tools
    • Mobile
    • Live rates
    • Historical rates
    • Embed converter
    • Help
  • FX Data Services
    • FX Data Services overview
    • Exchange Rates API
    • Corporate FX transfers
    • Historical currency converter
    • Contact us
    • Blog
  • OANDA Group
    • About OANDA
    • Media centre
    • Careers
Logotype
The Beat of the Global Markets
  • Home
  • News Events
    • Brexit
    • COVID-19
    • Earnings season
    • Non-farm payrolls
    • Trade war
    • US election
  • Markets
    • FX
    • Indices
    • Commodities
    • Crypto
  • Multimedia
    • Podcasts
    • Videos
  • Economic calendar
  • Analysts
Home/FX/Newsfeed/Technical analysis

Canadian dollar steady ahead of GDP

November 30, 2020 Share Print 0

The Canadian dollar has started the trading week on a high note. Currently, USD/CAD is trading at 1.2975, down 0.11% on the day.

Canadian dollar hits two-year high

The US dollar remains on the defensive, and that has been nothing but good news for the Canadian dollar, which has jumped on the bandwagon, as many of the major currencies have made significant gains against the struggling greenback. USD/CAD fell close to one percent last week, and on Monday, the pair dropped to a low of 1.2935, its lowest level since October 2018.

 

Canadian events mixed, GDP next

It’s a busy start to the week for Canadian events, after an abbreviated week without any Canadian releases. Building Permits continues to show volatility and plunged 14.6%, almost erasing the previous reading of 17.0%. Canada’s current account deficit narrowed to C$7.5 billion, down from C$8.6 billion. This marked the lowest deficit since June. On the inflation front, the Raw Materials Price Index posted a small gain of 0.5%, after a reading of 2.2% beforehand.

The Canadian dollar yawned at this batch of low-impact data, but it could be a very different story on Tuesday, with the release of GDP. Canada releases GDP on a monthly basis, rather than a quarterly basis. After a plunge of 11.6% in April GDP, the economy has reeled off four successive gains. However, the rate of expansion has been falling, suggesting that the recovery is tailing off. Analysts expect this trend to continue in the September GDP, with a weak gain of 0.9% expected. The GDP report should be treated as a market-mover, as an unexpected read could shake up the sleepy Canadian dollar.

.

USD/CAD Technical

 

  • There is support at 1.2939. Below, there is a support line at 1.2885
  • We find resistance at 1.3080, followed by resistance at 1.3167
  • USD/CAD remains below the 20-day MA line

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.

  • Bio
  • Google+
  • Latest Posts
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.
Kenny Fisher

+Kenny Fisher

Kenny Fisher

Latest posts by Kenny Fisher (see all)

  • Canadian dollar dips on mixed data - 01/18/2021
  • Aussie dips below 0.77 line - 01/18/2021
  • New Zealand dollar under pressure - 01/18/2021
Canada building permits, Canada Current Account, Canada GDP, Canada Raw Materials Price Index, USD/CAD, USD/CAD Technical Analysis
Back to Top
Subscribe
Subscribe form
Week ahead
Week Ahead – Earnings season in focus
Posted by Craig Erlam Jan 15, 2021
FX
US dollar edges lower in Asia
Posted by Jeffrey Halley Posted 1 hour ago
Canadian dollar dips on mixed data
Posted by Kenny Fisher Jan 18, 2021
Aussie dips below 0.77 line
Posted by Kenny Fisher Jan 18, 2021
Indices
Equities climb on Yellen dovishness
Posted by Jeffrey Halley Posted 1 hour ago
Asian equity markets slide
Posted by Jeffrey Halley Jan 18, 2021
Stocks slide on mostly poor economic data and as banks start...
Posted by Ed Moya Jan 15, 2021
Commodities
Oil flat, gold under pressure
Posted by Jeffrey Halley Posted 57 minutes ago
Oil slips while gold ticks higher
Posted by Craig Erlam Jan 18, 2021
Oil prices slide, gold range trades
Posted by Jeffrey Halley Jan 18, 2021
Crypto
Commodities, Cryptos, and FX: King dollar sends risky assets...
Posted by Ed Moya Jan 15, 2021
Oil pares gains, gold eases, bitcoin pulls back
Posted by Craig Erlam Jan 15, 2021
Oil pulls back, gold stable, bitcoin recovery
Posted by Craig Erlam Jan 13, 2021
Follow us
  • RSS
  • Facebook
  • Twitter
  • Google

Logotype

MarketPulse provides up-to-the-minute analysis on forex, commodities and indices from around the world.

  • OANDA Group
  • FX Data Services
  • Currency conversion
  • News events
  • Markets
  • Economic calendar
  • About MarketPulse
  • Terms of use
  • Site map
MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into the major economic trends and events that impact the markets. The content produced on this site is for general information purposes only and should not be construed to be advice, invitation, inducement, offer, recommendation or solicitation for investment or disinvestment in any financial instrument. Opinions expressed herein are those of the authors and not necessarily those of OANDA or any of its affiliates, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, please access the RSS feed or contact us at info@marketpulse.com © 2020 OANDA Business Information & Services Inc.