USD/CAD – Canadian dollar edges lower, investors eye BoC rate decision

USD/CAD has posted slight gains in the Tuesday session. In the North American session, the pair is trading at 1.3464, up 0.14% on the day. It’s a light session on the fundamentals front, with no Canadian events. In the U.S., CB consumer confidence is expected to remain at high levels. The April reading came in at 129.2 and the May estimate stands at 130.1.

With a lack of key data early in the week, the markets are keeping a close eye on the Bank of Canada, which will set the benchmark rate on Wednesday. The rate has been pegged at 1.75% since October, and the bank is expected to hold the course at the Wednesday meeting. With this in mind, investors will be looking for clues about future moves from the rate statement. Will policymakers sound positive about the economy? The labor market created a record number of jobs in April (106 thousand), and consumer spending has been solid. At the same time, trade tensions between the U.S. and China have soared, which has hurt risk appetite towards minor currencies like the Canadian dollar. As well, oil prices have fallen, which has weighed on the Canadian currency. USD/CAD has been fairly subdued in recent weeks, and the tone of rate statement, whether optimistic or dovish, could shake up the currency from its doldrums.

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USD/CAD Fundamentals

Tuesday (May 28)

  • 9:00 US HPI. Estimate 0.2%. Actual 0.1%
  • 9:00 US S&P/CS Composite-20 HPI. Estimate 3.1%. Actual 2.7%
  • 10:00 US CB Consumer Confidence. Estimate 130.1

Wednesday (May 29)

  • 10:00 BoC Rate Statement
  • 10:00 BoC Overnight Rate. Estimate 1.75%

*All release times are DST

*Key events are in bold

USD/CAD for Tuesday, May 28, 2019

USD/CAD, May 28 at 9:20 DST

Open: 1.3444 High: 1.3479 Low: 1.3434 Close: 1.3464

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3290 1.3383 1.3445 1.3552 1.3662 1.3771

USD/CAD showed little movement in the Asian session. The pair edged higher in European trade and is steady early in North American trade

  • 1.3445 is a weak support level
  • 1.3552 is the next resistance line
  • Current range: 1.3445 to 1.3552

Further levels in both directions:

  • Below: 1.3445, 1.3383, 1.3290 and 1.3200
  • Above: 1.3552, 1.3662 and 1.3771

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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.