USD/CAD: Canadian Dollar Rally Fizzles, Manufacturing Production Next
MarketPulse | Mar 15, 2019 08:32AM ET
The Canadian dollar is unchanged in the Friday session, after slight losses on Thursday. Early in the North American trade, the pair is trading at 1.3332, down 0.02% on the day. In the U.S., there are two key events. The Empire State Manufacturing Index is expected to climb to 10.1, while UoM Consumer Sentiment is projected to remain at 95.5 points. Canada releases manufacturing sales, which has rolled off three straight declines. The markets are expecting a better January, with an estimate of 0.4%.
The Bank of Canada has eased up on rate policy in 2019. The BoC raised rates five times between July 2017 and October 2018, but has since stayed on the sidelines. With the Canadian economy in a slowdown, the bank could stay on the sidelines until the second half of 2019. Was the sharp jump in rates too much for the economy to handle? One sore spot is the housing sector, which has declined for five straight months, as higher rates have made mortgages more expensive and reduced home purchases. If the economy does not rebound, policymakers will have to consider a rate cut, which could stimulate economic activity but would be bearish for the Canadian dollar.
USD/CAD Fundamentals
Friday (March 15)
- 8:30 Canadian Manufacturing Sales. Estimate 0.4%
- 8:30 US Empire State Manufacturing Index. Estimate 10.1
- 10:00 US Preliminary UoM Consumer Sentiment. Estimate 95.5
- 10:00 US JOLTS Openings. Estimate 7.27M
*Key events are in bold
USD/CAD for Friday, March 15, 2019
USD/CAD, March 15 at 8:20 EST
Open: 1.3334 High: 1.3339 Low: 1.3290 Close: 1.3339
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3125 | 1.3200 | 1.3290 | 1.3383 | 1.3445 | 1.3552 |
USD/CAD posted slight gains in the Asian session but has recovered in European trade
- 1.3290 is providing support
- 1.3383 is the next resistance line
- Current range: 1.3290 to 1.3383
Get The News You Want
Further levels in both directions:
- Below: 1.3290, 1.3200 and 1.3125
- Above: 1.3383, 1.3445, 1.3552 and 1.3662
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.