By Kenny Fisher
The Canadian dollar has lost ground on Tuesday, as USD/CAD trades at the 1.09 line in Tuesday's North American session. The loonie posted losses as Canadian Wholesale Sales came in at -0.4%, well short of the estimate of 0.4%. It's a very quiet schedule in the US, as today's only releases are speeches from two FOMC members.
In the US, last week ended with encouraging housing numbers. Building Permits jumped to 1.08 million, well above the estimate of 1.01 million. This was the highest level we've seen since December 2006. Housing Starts continues to move higher and climbed to 1.07M, compared to the estimate of 0.98M. This marked a five-month high. Meanwhile, UoM Consumer Sentiment dipped to 81.8 points, short of the estimate of 84.7 points.
US numbers have generally been strong, and last week's, employment and manufacturing numbers looked sharp. Unemployment Claims were outstanding, dropping to 297 thousand last week. This easily beat the estimate of 321 thousand and was the lowest level we've seen since May 2007. On the manufacturing front, the Philly Fed Manufacturing Index dipped to 15.4 points, but this was well above the estimate of 13.9 points. As well, Empire State Manufacturing Index climbed to 19.0 points, crushing the estimate of 5.5. This was the indicator's best showing in two years.
USD/CAD for Tuesday, May 20, 2014
USD/CAD May 20 at 14:20 GMT
USD/CAD 1.0905 H: 1.0906 L: 1.0872
- USD/CAD has moved higher on Tuesday.
- 1.0852 has strengthened as the pair trades at higher levels.
- On the upside, 1.0906 is under strong pressure. This is followed by the key level of 1.10.
- Current range: 1.0852 to 1.0906
Further levels in both directions:
- Below: 1.0852, 1.0775, 1.0706, 1.0678
- Above: 1.0906, 1.10, 1.1094, 1.1177 and 1.1319
OANDA's Open Positions Ratio
USD/CAD ratio is pointing to gains in Tuesday trading. This is consistent with what we are seeing from the pair, as the US dollar has moved to higher ground. The ratio has a majority of long positions, indicative of trader bias in favor of the US dollar continuing to post gains.
USD/CAD has pushed above the 1.09 line on Tuesday. The pair is unchanged in the North American session.
- 12:30 Canadian Wholesale Sales. Estimate +0.4%. Actual -0.4%.
- 16:30 FOMC Member Charles Plesser Speaks.
- 17:00 FOMC Member William Dudley Speaks.
*Key releases are highlighted in bold
*All release times are GMT
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.