USD/CAD – Canadian Dollar Hits 10-Week High

The Canadian dollar rally continues on Christmas week, as the currency has posted six straight winning sessions. In the Friday session, USD/CAD is trading at 1.2537, down 0.27%. With no Canadian or US indicators, on the schedule, traders can expect a quiet end to the last week of 2018.

Christmas week has been marked by thin trading, and there are no Canadian events this week. Still, the Canadian dollar is on the move, and has posted strong gains of 1.5%. Canada’s GDP in October disappointed, with a flat reading of 0.0%. Still, recent consumer indicators have been strong. Retail Sales sparkled with a gain of 0.8% in October, well above the forecast of 0.4%. This was the indicator’s highest gain since April. As well, CPI improved to 0.3% in November, marking a five-month high. This edged above the estimate of 0.2%. The Canadian dollar has enjoyed an excellent December, but could face some headwinds next month, as the Federal Reserve is widely expected to raise interest rates at its January meeting, following the rate hike earlier in December.

The US dollar remains under pressure, as key indicators this week were a mix. On Thursday, unemployment claims were unchanged at 245 thousand, above the forecast of 241 thousand. Earlier in the week, consumer confidence slowed, but housing numbers remained strong. New Home Sales sparkled, with a gain of 733 thousand. This easily beat the estimate of 654 thousand, and was the highest reading since September 2007.

USD/CAD Fundamentals 

Friday (December 29)

• There are no Canadian or US events

*All release times are GMT

*Key events are in bold

USD/CAD for Friday, December 29, 2017

USD/CAD, December 29 at 5:55 EDT

Open: 1.2569 High: 1.2573 Low: 1.2531 Close: 1.2537

USD/CAD Technical

USD/CAD has posted small losses in the Asian and European sessions

• 1.2494 is providing support
• 1.2630 is the next resistance line
• Current range: 1.2494 to 1.2630

Further levels in both directions:

• Below: 1.2494, 1.2351 and 1.2190
• Above: 1.2630, 1.2757, 1.2860 and 1.3015

OANDA’s Open Positions Ratio

In the Friday session, USD/CAD ratio is showing little movement. Currently, long positions have a majority (53%), indicative of trader bias towards USD/CAD reversing directions and moving higher.

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.