The Canadian dollar was flat Wednesday, USD / CAD trades just above the line 1.39 in Wednesday's European session. It's a busy day on the economic calendar, so that we could see some movement of the pair during the day. Canada will release the two engines of the market, sales in core retail and GDP. In the US, we will have a look at durable goods orders and UoM Consumer sentiment.
The US economy continues to improve, GDP grew 2.0%, above the forecast of 1.9%. The main catalyst for the strong reading was consumer spending, confidence in the economy remains strong, the US consumer has shown a greater willingness to open the purse strings. Falling gas prices have contributed, as consumers have more disposable income available. There was more good news from the manufacturing sector, which has been a weak economic zone, as the Richmond manufacturing index jumped to a high of 5 months, climbing to 6 points. The estimate stood at -1 point. However, existing home sales dropped sharply, falling to 4.76 million, its worst result since April 2014.
After months of sitting on the sidelines, the Federal Reserve finally pressed the easing of interest rates, the higher interest rate of 0.25 percent, the first rate hike since June 06. the Fed dropped a broad hint in its policy meeting in October on a rate hike before the end of 2015, and predictably, investors and traders were busy trying to guess whether the Fed would indeed press the trigger rate. Credited to the Fed chief Janet Yellen and his colleagues, the Fed implemented a carefully designed strategy, sending a constant stream of signals that it intends to tighten monetary policy, if economic conditions remained positive. This gave enough time to the market price of a rise in interest rates, and volatility in the currency markets was not excessive after rising US rates, the first in nearly 10 years. Although we expect an increase of 0.25 per cent to have limited economic impact, the movement of the Fed gave the US economy a crucial vote of confidence, and it will be duly noted by global markets. Moreover, this movement should be the first of a series of additional rate hikes during the year 2016, and higher interest rates means that the US dollar will become even more attractive to investors, to the detriment other currencies, which could spell bad news for the Canadian dollar wobbly.
The Canadian dollar experienced a terrible December, sinking 0 points against its US counterpart. However, the currency has leveled this week, remaining close to the 1.39 line. As the currency for commodities, the Canadian dollar is sensitive to the ups and downs in the prices of commodities. With the prices of oil mired in multi-lows, the Canadian economy has taken a hit, and the Canadian dollar also reacted with net losses. rates from the Federal Reserve to increase last week only added to the woes of the Canadian dollar, and the USD / CAD hit above the line 1.40 weeks last first held since May 04. Traders should be prepared for the Canadian dollar to continue to fall because there is little reason to expect the currency to recover anytime soon.
USD / CAD Fundamentals
Wednesday (December 23)
- 13: 30 Canadian core retail sales
- 1:30 p.m. Canadian GDP
- 13:30 Canadian retail sales
- 1:30 p.m. US durable goods orders. Estimated 0.1%
- 1:30 p.m. Index US base PCE price. Estimated 0.1%
- 1:30 p.m. US Durable Goods Orders. Estimate -0.6%
- 1:30 p.m. US personal income. Estimated 0.2%
- 3:00 p.m. US New Home Sales. Estimated 507K
- 3:00 p.m. US Revised UoM Consumer Sentiment. 92.1 point estimate
- 3:00 p.m. US UoM inflation expectations revised
- 3:30 p.m. US crude oil inventories. Estimated 1.4M
Thursday (24 December)
Upcoming Milestones
1:30 p.m. US unemployment claims. Estimated 270K
* Key releases are highlighted in bold
* All GMT release time
USD / CAD for Wednesday, December 23 , 2015
USD / 22 CAD December at 8:50 GMT
USD / CAD 1.3914 H: L 1.3923: 1.3911
USD / technical CAD
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3640 | 1.3757 | 1.3865 | 1.40 | 1.4165 | 1.4310 |
- USD / CAD was stable in the Asian and European sessions, continuing the trend we saw a day earlier.
- There is a resistance to the round number of 1.40
- 1.3865 provides the level of support
- current range :. 1.3865 to 1.40
Further levels in both directions
- Below: 1.3865, 1.3757 and 1.3640
- above: 1.40, 1.4165 and 1.4310 ratio
open positions OANDA
report USD / CAD is unchanged, reflection the absence of movement of the pair. Short positions have a commanding majority (66%), indicative of a bias towards trader USD / CAD lower displacement.
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.
[ad_2]
Read More: USD/CAD – Canadian Dollar in Holding Pattern Ahead of Canadian Retail Sales, GDP
0 Komentar untuk "USD/CAD – Canadian Dollar in Holding Pattern Ahead of Canadian Retail Sales, GDP"