There was a quiet start to the week for USD / CAD, with the pair trading at 1.3340 in European session on Tuesday. On the exit front, the only event on the calendar is the NFIB Small Business Index. Canada will publish two construction reports. Starts are expected to increase to 181,000 while building permits are expected to show a sharp decline of 2.2%.
The Canadian dollar has recovered nearly 10 percent since late January, when the USD / CAD touched a high of 1.460. solid economic indicators, rising oil prices and growing doubts about a Fed rate hike before mid-2016 boosted the Canadian dollar. The BOC will announce its benchmark interest rate Thursday, with not expected the central bank to lower the current rate of 0.50%. The market is now focused on the federal budget on March 22, which should contain a stimulus package to support the economy, which has taken a hit because of the oil price fall. The BOC is likely to follow the effects of the stimulus on the economy expected for several months and take a decision on rates according to levels of growth and inflation.
The US employment data last week was mixed. nonagricultural employment impressed by a 242,000 reading in January, much higher than the estimate 195 000. This was much stronger than the (revised) the previous reading of 171,000. The US economy added an average of 225,000 jobs per month since December, an impressive number given that the economy has softened in the first part of 2016. However, new employment was mixed as growth wages decreased 0.1% shy of the estimate of a 0.2% gain. This marked the first decline in wages since December 2014. This indicator is closely linked to inflation as an increase in average wages of workers have more money to spend. means the decline of the indicator that the inflation target of about 2.0% of the Fed stays away, so the Fed is keeping an eye on the small picture of inflation it is unlikely to press the trigger rate at its policy meeting later this month.
USD / CAD for Tuesday, March 8, 2016
USD / 8 CAD March at 5:40 ET
Open 1.320 Low 1.3279 Max: 1.3349 Close 1.3343
USD / technical CAD
| S1 | S2 | S1 | R1 | R2 | R3 |
| 1.3097 | 1.3223 | 1.3318 | 1.3457 | 1.3587 | 1.3757 |
- USD / CAD edged up in Asian session and stabilized in European trade
- 1.3318 remains busy and could see further measures during the day. He is currently a low level of support
- There is resistance at 1.3457
- Current range: 1.3318 to 1.3457
other levels in both directions
- below: 1.3318, 1.3223 and 1.3097
- above: 1.3457, 1.3587 and 1 3757
USD / CAD Fundamentals
Tuesday (March 8)
- 6:00 NFIB Index US Small Business. Estimate 94.5
- 8:15 Canadian Housing Starts. Estimated 181K
- 8:30 The Canadian Building Permits. Estimate -2.2%
Upcoming key events
Wednesday (March 9)
- 10:00 BOC rate Statement
- 10:00 Canadian overnight rate. Estimate 0.50%
* Key events in bold
* All times are EST release of
For a full list events planned in the foreign exchange market, visit the economic calendar MarketPulse
Open ratio positions OANDA
report USD / CAD showed little movement this week, agree with the lack of activity from USD / GOUJAT. The long and short positions are close to an even split, indicating a lack of bias in which direction to trade USD / CAD will take next.
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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