MarketPulse | Feb 08, 2018 08:12AM ET
The Canadian dollar has posted small losses in the Wednesday session. Currently, the pair is trading at 1.2590, up 0.17% on the day. Canada will release Housing Starts, while the US publishes unemployment claims. On Friday, Canada releases key employment data – Employment Change and the unemployment rate.
The US dollar has posted broad gains this week, boosted by strong volatility in the stock markets. On Monday, the Dow Jones posted its biggest one-day loss, and US markets have pointed downwards for much of the week. The catalyst for the stock market slide is concern that inflation could rise in the US, which in turn would trigger additional rate hikes from the Fed. This would make the US dollar more attractive against other currencies. With investor risk appetite sharply lower, the Canadian dollar is under strong pressure. Earlier in the day, USD/CAD touched a high of 1.2598, its highest level since late December.
Canadian indicators disappointed on Tuesday. Canada’s trade deficit widened from C$2.5 billion to C$3.2 billion, well above the estimate of C$2.3 billion. The export sector has been steady, but uncertainty over NAFTA is a dark cloud over the economy, and exports could suffer if the trilateral free trade pact is not renewed. The US has threatened to leave the pact if the Canada and Mexico do not agree to major concessions, such as increasing the percentage of US content in auto parts produced under NAFTA. Elsewhere, Canadian Ivey PMI continues to point to expansion, but slowed to 55.2, down from 60.4 in the previous release. This was well off the forecast of 60.7 points.
USD/CAD Fundamentals
Thursday (February 8)
Friday (February 9)
*All release times are GMT
*Key events are in bold
USD/CAD for Thursday, February 8, 2018
USD/CAD, February 8 at 8:00 EDT
Open: 1.2668 High: 1.2598 Low: 1.2550 Close: 1.2590
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2190 | 1.2351 | 1.2494 | 1.2630 | 1.2757 | 1.2855 |
USD/CAD inched lower in the Asian session and has posted small gains in European trade
Further levels in both directions:
OANDA’s Open Positions Ratio
USD/CAD ratio is showing movement towards short positions. Currently, long positions have a majority (53%), indicative of trader bias towards USD/CAD continuing to move upwards.
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.