MarketPulse | Jul 16, 2018 08:59AM ET
The Canadian dollar is almost unchanged in the Monday session. Currently, USD/CAD is trading at 1.3145, down 0.07% on the day. On the release front, Canadian Foreign Securities Purchases dropped sharply to C$2.18 billion, well short of the estimate of C$7.03 billion. This marked a 5-month low. In the US core retail sales dropped to 0.4%, matching the estimate. Retail sales dropped to 0.5%, edging above 0.4%.
In the US, the focus is on consumer spending reports, with both retail sales and core retail sales expected to drop to 0.4%. On the manufacturing front, Empire State Manufacturing Index is forecast to drop to 20.3 points. On Tuesday, Federal Reserve Chair will testify before the Senate Banking Committee and Canada releases Manufacturing Sales.
The US economy is firing on all cylinders and received a vote of confidence from the head of the Federal Reserve. On Thursday, Powell said that the economy is “in a really good place,” pointing to President Trump’s massive tax cut scheme and increased spending as key factors in boosting economic growth. Powell did not address monetary policy and said he was uncertain as to the effects of the current trade disputes which has embroiled the US and its trading partners. The Fed will likely press the rate trigger in the second half of the year, but it is an open question as to whether we’ll see one hike over the next six months. The Fed is projecting growth of 2.8% in 2018, compared to 2.3% in 2017. Powell will be in the spotlight next week when he appears for his semi-annual testimony before Congress.
Trade policy is not part of the Federal Reserve’s mandate, but Fed policymakers continue to voice concern about the escalating trade war between the US and its major trading partners, particularly China. On Friday, Dallas Fed President Robert Kaplan said he would have to downgrade his outlook if the tariff battle continues. Kaplan said that US tariffs on steel and aluminum imports had dampened capital expenditures plans and further trade tensions could lead to currency fluctuations and geopolitical instability.
Monday (July 16)
Tuesday (July 17)
*All release times are DST
*Key events are in bold
USD/CAD for Monday, July 16, 2018
USD/CAD, July 16 at 8:35 DST
Open: 1.3157 High: 1.3167 Low: 1.3137 Close: 1.3145
USD/CAD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1.2831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 | 1.3436 |
USD/CAD posted small losses in the Asian and European sessions. The pair has posted slight gains early in the North American session
Further levels in both directions:
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