USD/CAD Hikes To 2017 Highs Ahead Of Retail Sales Report
FxGrow | Apr 26, 2017 21:13
USD/CAD extended the bullish momentum and the loonie failed to corner US dollar although the Index collapsed to 2017 lowest at 98.55 yesterday. The pair clocked 1.3626 Feb-2017 fresh highs, peeking 134-pips in a single day after Trump waived the NAFTA negotiation terms with north partner, Canada. The main items on NAFTA menu were Lumber and Diary items. Trump tweeted saying that Canada, and included Mexico in his tweet, saying that both counties has been taking advantage of the US, putting them on trade notice. Although markets markets can never be sure how serious Trump is giving his past history of controversial tweets, then backing up like nothing happened, but the USD/CAD responded really well.
Bearish Crude oil levels also added additional losses for the Loonie, but the pair has made some recovery today with 1.3572 low, currently trading 1.3567, and on the path of additional gains. Today, eyes are focused on Trump's tax plan which in case delivered, expectation for USD/CAD to tweet higher given that US Dollar Index has recovered with 98.94 high today. On the other hand, the Loonie awaits local retails sales, set to release at 12:30 PM GMT, which could increase the bullish pace pedal for USD/CAD in case of negative outcome. Last Canadian retail sales recorded 1.7%, and expectation are negatively at 0.2%.
h2 Fundamentals:/h21- CAD - Core Retails Sales today at 12:30 PM GMT.
2- USD - Trump Tax Plan delivery today.
3- USD - Core Durable Goods Orders m/m and Unemployment Claims tomorrow at 12:30 PM GMT.
h2 Technical overview:/h2Trend: Bullish
Resistance levels: R1 1.3639, R2 1.3748, R3 1.3898
Support levels: S1 1.3458, S2 1.3314, S3 1.3169
Comment: The above fundamentals will determine how the rift will settle between US and Canadian Dollar. US Crude inventories will contribute to USD/CAD levels indirectly given that Canada is a major oil producer. A close below S2 level alerts for bullish trend reversal and closing below S3, bearish trend is confirmed 100%.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.