USD/CAD – Canadian Dollar Steady As US Employment, Mfg. Data Beat Expectations

By Kenny Fisher

USD/CAD continues to have an uneventful week. The span has edged aloft on Friday as it trades during a 1.31 level. It’s a still finish to a week, with usually dual teenager events on a schedule. Canada will recover Foreign Securities Purchases, that is foresee to stand to C$11.59 billion. In a US, a CB Leading Index is approaching to post a benefit of 0.5% for a second true month.

The US economy continues to perform well, as underscored by pointy mercantile information on Thursday. Unemployment claims were somewhat aloft during 239,000, though kick a foresee of 245,000. On a production front, a Philly Fed Manufacturing Index soared to 43.3 points, abrasive a guess of 18.5 points. This remarkable a top turn given 2011. Earlier in a week, a Empire State Manufacturing Index also climbed sharply, with a reading of 18.7 compared to a foresee of 7.2 points. The surprisingly clever information is acquire news from a production sector, that like other industrialized countries, has been smashed by globalization. President Trump has betrothed to pierce production jobs behind to a US and buoy a struggling sector. There was some-more good news from a acceleration front, as PPI and CPI posted important gains of 0.6% in January, above their estimates.

With a US economy banishment on all cylinders, Federal Reserve Chair Janet Yellen is in a enviable position of determining a suitable timing of a rate hike. Earlier this week, Yellen done her semi-annual coming before Congress. In her testimony, Yellen sounded upbeat about a US economy. She remarkable that acceleration is relocating towards a Fed’s 2 percent target, a labor marketplace stays impassioned and consumer spending is strong. A rate travel appears to be usually a doubt of time, as Yellen warned that “waiting too prolonged to mislay accommodation would be unwise”. If a US economy stays on lane in 2017, analysts design dual or 3 tiny rate hikes. At a same time, a Fed needs to take into comment a mercantile position of a new administration, that stays unclear. President Trump has betrothed to outline a taxation remodel devise in a few weeks, though has left a Fed and a markets in a dim per mercantile policy. Barring an astonishing tailspin from a economy, a Fed is approaching to lift rates in a initial half of 2017.

With family between Britain and a European Union exceedingly stretched over Brexit, Canada is staid to take advantage of a situation. The EU and Canada have finalized a giveaway trade agreement (CETA), that contingency now be validated by both sides. On Tuesday, a House of Commons voted to adopt a agreement, as did a European Parliament. The legislation now moves to a Canadian Senate, that is approaching to stamp a capitulation in March. CETA is approaching to boost Canada-EU trade by 20 percent, that translates into $12 billion for a Canadian economy. Both sides have high hopes from a agreement. Canada is looking to revoke a coherence on a United States, that is a end of 80 percent of Canadian exports. President Trump’s protectionist position has sent alarm bells off in Ottawa, with Trump dogmatic he would slice adult NAFTA. Trump has given lowered a rhetoric, observant that while he wants to make poignant changes with Mexico, he merely wants to “tweak” a agreement with Canada. Still, given Trump’s unpredictability, Canada will be looking to build on CETA and interpretation trade agreements with other countries. For a EU, this would symbol a initial trade agreement with a G-7 member and comes during a time when EU-US giveaway trade talks have been suspended.

European Parliament Approves CETA

USD/CAD Fundamentals

Friday (February 17)

  • 8:30 Canadian Foreign Securities Purchases. Estimate C$11.59B
  • 10:00 US CB Leading Index. Estimate 0.5%

*All recover times are GMT

*Key events are in bold

USD/CAD for Friday, Feb 17, 2017

USD/CAD Feb 17 during 6:40 EST

Open: 1.3075 High: 1.3098 Low: 1.3058 Close: 1.3096

USD/CAD Technical

  • USD/CAD was prosaic in a Asian event and has posted tiny gains in European trade
  • 1.3003 is providing diseased support
  • 1.3120 is a diseased insurgency line

Further levels in both directions:

  • Below: 1.3003, 1.2922 and 1.2815
  • Above: 1.3120, 1.3253, 1.3371 and 1.3461
  • Current range: 1.3003 to 1.3120

OANDA’s Open Positions Ratio

USD/CAD ratio is display small transformation in a Friday session. Currently, prolonged positions have a infancy (65%), demonstrative of merchant disposition towards USD/CAD stability to pierce higher.

This essay is for ubiquitous information functions only. It is not investment recommendation or a resolution to buy or sell securities. Opinions are a authors; not indispensably that of OANDA Corporation or any of a affiliates, subsidiaries, officers or directors. Leveraged trade is high risk and not suitable for all. You could remove all of your deposited funds.

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