MarketPulse | Feb 27, 2018 08:27AM ET
The Canadian dollar has recorded small gains in the Tuesday session. Currently, USD/CAD is trading at 1.2703, up 0.13% on the day. On the release front, the sole Canadian event is the annual budget. In the US, it’s a busy day. Core Durable Goods Orders are forecast to dip to 0.4%, and Durable Goods Orders are expected to decline 2.4%. Another key release is CB Consumer Confidence, which is expected to climb to 126.2 points. As well, Jerome Powell will testify before a congressional committee.
It’s budget day for Ottawa, and the markets are not expecting any bombshells from finance minister Bill Morneau. In October, the Trudeau government revised downwards the deficit for the 2017-2018 fiscal year to C$19.9 billion. The Canadian economy was steady in the fourth quarter, so the deficit could be even lower. The budget is not expected to show any major spending, so it’s likely that the release will not shake up the Canadian dollar. The Canadian currency lost ground last week, and touched its lowest level since late December.
All eyes are on Federal Reserve Chair Jerome Powell, who took over from Janet Yellen earlier this month. Powell will testify before the House Financial Services Committee, his first major appearance as head of the central bank. Powell received a rude welcome from the markets just after moving into his new office, as the global stock market correction erased some $4 trillion in valuations. The volatility forced Powell to make a public statement, reassuring the markets that the Fed was closely monitoring the situation.
How will the US dollar react to Powell’s testimony before the House Finance Services Committee? After the recent turmoil in the stock markets, Powell may opt to play it safe and keep away from any splashy headlines, which could lead to more fluctuation in the markets. Powell could choose to focus on the strong US economy and the Fed trimming its balance sheet, and steer away from a discussion of accelerating rate policy in order to head off higher inflation.
USD/CAD Fundamentals
Tuesday (February 27)
*All release times are GMT
*Key events are in bold
USD/CAD for Tuesday, February 27, 2018
USD/CAD, February 27 at 8:00 EST
Open: 1.2686 High: 1.2706 Low: 1.2669 Close: 1.2703
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2351 | 1.2494 | 1.2630 | 1.2757 | 1.2855 | 1.2920 |
USD/CAD showed little movement in the Asian session and has posted slight gains in the European session
Further levels in both directions:
OANDA’s Open Positions Ratio
USD/CAD ratio is unchanged in the Tuesday session. Currently, short positions have a slender majority (52%), indicative of slight trader bias towards USD/CAD reversing directions and moving lower.
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.