After strong gains Tuesday, USD / CAD is stable in Wednesday's European session. The pair is currently trading at 1.3460. On the exit front, we will have a look at the number of key US jobs, with the release of ADP non-farm employment. The markets expect a reading of 185,000, which would be much lower than the previous reading of 205,000. Thursday brings additional employment data, with the release of the US Unemployment Claims. There are no Canadian Press Wednesday.
The Canadian dollar posted stunning gains in February, earning more than 400 points from its US counterpart. The impressive rally continued in March, as the currency jumped more than 100 points on Tuesday, propelled by a report on the Canadian GDP was stronger than expected. Canadian GDP is published monthly, and the release in January of 0.2% beat the estimate of 0.1%. Although GDP has actually declined in December, the sentiment towards the Canadian dollar remains high on the markets, while the recent recovery in oil prices, though modest, was good news for Canada, a major oil producer. The Canadian dollar has been hit hard by the collapse in oil prices in USD / CAD is mounted near the line 1.47 in January. GDP grew 1.2% in 2015, far from the 2014 rate of 2.5%. What can we expect from the Canadian economy in the first quarter? Economists are divided, with projections ranging from 0.5 percent to 1.0 percent.
The US economy slowed in early 2016, unable to maintain the fast pace that characterized the second half of last year. This has reduced expectations for a rate hike by the Federal Reserve in March, as Fed policymakers said economic conditions will improve before another realignment. Meanwhile, reports in January in the US housing sector raise concerns. Starts and Building Applications fell in January, and New Home Sales and Pending Home Sales followed, missing expectations. Activity in the housing sector is closely monitored by analysts, as a decrease in residential construction may affect other sectors of the economy. The US manufacturing sector also struggled, but there was positive news last week, durable goods orders and durable goods orders were much stronger than expected in January.
USD / CAD for Wednesday, March 2, 2016
USD / 2 CAD Mars at 7:00 ET
Open 1.3428 Low 1.3413 top 1.3468 Close 1.3458
USD / technical CAD
| S1 | S2 | S1 | R1 | R2 | R3 |
| 1.3223 | 1.3318 | 1.3457 | 1.3587 | 1.3757 | 1.39 |
- USD / CAD is flat in the Asian session and posted small gains in European session
- 1.3457 remains under pressure and is a weak support line
- There is a resistance to 1.3587
- current range: 1.3457 to 1.3587
other levels in both directions
- below: 1.3457, 1.3318 and 1 , 3223
- above: 1.3587, 1.3757 and 1.39
USD / CAD Fundamentals
Tuesday (March 1st)
- 8:30 Canadian GDP. 0.1% estimate. Actual 0.2%
- 10:00 US ISM Manufacturing PMI. Estimate 48.5 points. Actual 49.5 points
Upcoming key events
Wednesday (March 2)
- 8:15 US ADP non-farm employment Change. Estimated 185K
- 10:30 US crude oil stocks. Estimated 2.5M
- 2:00 p.m. US Beige Book
key events Upcoming
Thursday (March 3rd)
- 8:30 the US unemployment claims. Estimated 271K
- 10:00 US ISM non-manufacturing. Estimate 49.8 points
* Key events in bold
* All times are EST release of
For a list full of events planned in the foreign exchange market, visit the economic calendar MarketPulse
Open ratio positions OANDA
USD / CAD ratio shows little movement, in agreement with the lack of activity from USD / CAD. Long positions retain a slight majority position (53%). This points to slight bias to trade USD / CAD continues to lose ground.
This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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