USD/CAD: Canadian Dollar Steady, Wholesale Sales Ahead - Forex Vs Stock

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Monday, November 20, 2017

USD/CAD: Canadian Dollar Steady, Wholesale Sales Ahead

USD/CAD
The Canadian dollar has edged lower in the Monday session. Currently, USD/CAD is trading at 1.2788, up 0.15% on the day. On the release front, the sole indicator is US CB Leading Index, with an estimate of 0.6%. On Tuesday, Canada releases Wholesale Sales and the US publishes Existing Home Sales. As well, US Federal Reserve Chair Janet Yellen will speak at an event in New York City.
Like its southern neighbor, Canada continues to grapple with low inflation levels. There were no surprises on Friday, as CPI posted a negligible gain of 0.1% for October, matching the estimate. The Bank of Canada remains cautiously optimistic about inflation – on Wednesday, Senior Deputy Governor Carolyn Wilkins said she expected wages to rise as the economy improved. Inflation levels remain well below the Bank’s inflation target of 2.0%, and the markets don’t expect another rate hike until 2018.
US housing numbers ended the week on a positive note, easily beating expectations. Building Permits for single-family homes jumped to 1.30 million, above the estimate of 1.25 million. The annualized pace of 839,000 building permits in October was the fastest since September 2007. Housing Start also sparkled, accelerating to 1.29 million, compared to an estimate of 1.19 million. The catalyst for the strong numbers were hurricanes Harvey and Irma, which caused massive damage in the southern part of the US. With rebuilding efforts well underway, construction numbers should remain strong in the fourth quarter.
USD/CAD Fundamentals
Tuesday (November 21)
8:30 Canadian Wholesale Sales. Estimate 0.6%
10:00 US Existing Home Sales. Estimate 5.42M
18:00 US Federal Reserve Chair Janet Yellen Speaks

USD/CAD Technical
USD/CAD edged higher in the Asian session and is showing little movement in European trade
1.2757 has switched to a support role. It is a weak line
1.2860 is the next resistance line
Further levels in both directions
Below: 1.2757, 1.2630 and 1.2532
Above: 1.2860, 1.3015 and 1.3165

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