USD/CAD: Canadian Dollar Drifting Ahead Of U.S. Retail Sales
MarketPulse | Nov 15, 2018 08:36AM ET
The Canadian dollar is showing limited movement in the Thursday session. Currently, USD/CAD is trading at 1.3223, down 0.14% on the day. On the release front, it’s a busy day in the United States. Retail sales and core retail sales are both expected to improve sharply, with estimates of 0.5% and 0.6%, respectively. The Philly Fed Manufacturing Index is expected to dip to 20.1 points, while unemployment claims are forecast to remain almost unchanged, at 213 thousand. Canada will release ADP (NASDAQ:ADP) nonfarm employment change. On Friday, Canada releases Manufacturing Sales.
On Wednesday, U.S consumer inflation numbers beat their estimates for October. The consumer price index posted a gain of 0.3%, its strongest gain since January. Core CPI, which excludes food and energy prices edged higher to 0.2%, marking a 3-month high. Both releases were in line with forecasts. Core CPI was 2.1% higher than a year ago, and this solid release means that the Fed remains on track to continue raising interest rates. The Federal Reserve holds its next policy meeting in December, with the odds of a December rate hike at 72%, according to the CME Group (NASDAQ:CME).
The Canadian dollar continues to struggle in November. Earlier in the month, USD/CAD touched a high of 1.3264, its highest level since July. The currency tends to lose ground when risk appetite is low, and trouble spots such as U.S-China relations, Brexit and the Italian budget crisis have unnerved global equity markets. A hawkish Federal Reserve has also led to investors snapping up U.S. dollars. With the U.S. economy firing on all cylinders and the Fed expected to continue its stance of gradual rate increases, the Canadian dollar could continue to face headwinds in November.
USD/CAD Fundamentals
Thursday (November 15)
- 8:30 Canadian ADP Nonfarm Employment
- 8:30 US Core Retail Sales. Estimate 0.5%
- 8:30 US Retail Sales. Estimate 0.6%
- 8:30 US Philly Fed Manufacturing Index. Estimate 20.1
- 8:30 US Empire State Manufacturing Index. Estimate 19.9
- 8:30 US Import Prices. Estimate 0.1%
- 8:30 US Unemployment Claims. Estimate 216K
- 10:00 US FOMC Member Quarles Speaks
- 10:00 US Business Inventories. Estimate 0.3%
- 10:30 US Natural Gas Storage. Estimate 35B
- 11:00 US Crude Oil Inventories. Estimate 2.9M
- 11:30 US Fed Chair Powell Speaks
- 13:00 US FOMC Member Bostic Speaks
Friday (November 16)
- 8:30 Canadian Manufacturing Sales. Estimate 0.1%
*All release times are DST
*Key events are in bold
Get The News You Want
USD/CAD for Thursday, November 15, 2018
USD/CAD, November 15 at 8:10 EST
Open: 1.3242 High: 1.3250 Low: 1.3210 Close: 1.3224
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2970 | 13099 | 1.3198 | 1.3292 | 1.3383 | 1.3461 |
USD/CAD ticked higher in the Asian session but then retracted. The pair has shown little movement in the European session
- 1.3198 is providing support
- 1.3292 is the next resistance line
- Current range: 1.3198 to 1.3292
Further levels in both directions:
- Below: 1.3198, 1.3099, 1.2970 and 1.2831
- Above: 1.3292, 1.3383 and 1.3461
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.